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Market Reviews For GBPUSD, DOW Index And Gold Price Update

May 27, 2017


GBPUSD 30 min:

GBPUSD 4 hr:

Well!  The market finally gave us the action which the main wave count had called for. That is an impulsive decline in a possible wave '3' grey and a break of that important support line at 1.2865.

The focus has now fully shifted to the downside, and the beginning of a renewed downtrend in wave (5) blue. The indecision in the wave pattern over the last few days was resolved with a very impulsive third wave down.

Wave '2' grey traced out a running flat correction, a wave which is always throws the cat amongst the pigeons! At the moment I can count five waves complete 'within wave '3'.

For next week we should get a three wave correction in wave '4' grey and wave '5' grey will likely decline into the trend line once more. Support at 1.2865 now becomes a significant resistance level and should hold the price for now. Look for wave '4' grey to complete below 1.2865 on Monday.


USDJPY 30 min:

USDJPY 4 hr:

Despite further declines today in USDJPY, The price did not take out the support at 110.85 which leaves the bullish short term wave count intact. Today’s decline completes a three wave form off the recent high labelled wave '1' pink.

The current wave count still calls for a major rally in wave '3' pink, and the support is at that wave '2' low of 110.85. If the price breaks 111.95, then wave '3' will likely be underway. A break of 111.47 strengthen the bullish case in the short-term.

In the early trade next week, watch for the key support at 110.85 to hold, and a break of 111.47.


DOW 30 min:

DOW 4 hr:

The DOW is now moving in a corrective pattern, possibly in wave 'ii' pink. I have labelled the short-term chart as a complete wave 'a' and 'b' in blue. That leaves wave 'c' blue to the downside to finish off wave 'ii' pink.

I have marked 20925 as the initial target for wave 'c' blue. This is the low of the previous fourth wave. 20875 marks the Fibonacci 38.2% retracement level.

For Monday, a break of 21037, the wave 'a' low will signal wave 'c' has started. The low at wave 'ii' pink offers the next best opportunity to enter long.


GOLD 30 min:

GOLD 4 hr:

Today’s rally in GOLD has triggered the alternate wave count for wave 'ii' brown. That means wave 'ii' brown traced out a running flat which bottomed at 1247. The rise off that low now has a nice impulsive look to it, and one more push up would break the resistance level and create a clear five wave form off the low. That type of action would complete wave '1' pink. Wave '2' pink should find support at 1259. Any break of 1247 form this point will signal that wave 'ii' brown was extending into a more complex form.

For early next week, watch for a break of 1271 to prove the bullish case.

That’s it for this week.


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