EURUSD Top Scenario, Gold Has An Even More Bullish Interpretation -

EURUSD Top Scenario, Gold Has An Even More Bullish Interpretation

Jul 27, 2017Jeremy ParkinsonFinance0

EURUSD

30 min

4 Hours

Daily

My Bias: long term bearish
Wave Structure: downward impulse wave
Long term wave count: lower in wave (3) red
Important risk events: EUR: German Prelim CPI m/m. USD: Advance GDP q/q, Revised UoM Consumer Sentiment.

Hello and good evening to you all.

After a rally into the trend line as expected, the price structure has now completed a five wave rally in wave ‘v’ pink.
Last night the target for a top was set at 1.1782.
The the overnight high reached 1.1776 and then sold off in a possible impulsive wave structure.

I have labelled that decline with wave ‘i’ pink.
With the general expectation of a major top soon in EURUSD, I feel it is important to remain vigilant.

I want to draw your attention to the 4hr chart.
The RSI is now on the verge of giving a momentum sell signal by declining through the centreline.
The declining trendline has remained intact, and the divergence situation now sits at a critical point.
This market has the very real potential to sell off in a big way under these conditions.

For tomorrow;
Watch for a three wave correction into a possible wave ‘ii’ pink.
A break of 1.1616 will add weight to the idea of a top in place.

DOW JONES INDUSTRIALS

30 min

4 Hours

Daily

My Bias: market topping process ongoing
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Long term wave count: Topping in wave (5)
Important risk events: USD: Advance GDP q/q, Revised UoM Consumer Sentiment.

Stocks have remained feverishly bullish all day despite a brief sell-off back to par.
I had a hunch that wave ‘ii’ pink could be brief given the mood in the market.
And nothing seems to be deterring the bullish sentiment right now.

I have labelled wave ‘ii’ pink as complete at today’s low and as I write the price just popped above wave ‘b’ blue to create another new all time high!
Of course this is just a healthy market rationally valuing the future cash-flows these companies and investors allocating scarce capital in the most efficient manner – No bubble to see here, move along folks!