The Dollar Index (USD) seems to be completing a possible pattern which could cause weakness. Given that said, the EUR/USD and GBP/USD also seem to be synchronized with that possibility, showing probabilities of rallies in a sustained impulsive manner.
With the USD/JPY showing a decline in the previous trading sessions, it may have entered a bearish territory, which could be a bit difficult to overcome.
Precious Metals have proved to shine in the second trading week of October, with XAU/USD and XAG/USD rising towards what appears to be a bullish sequence.
This week, the US & EU Indices managed to recover some of the sudden losses caused by the VIX spike and volatility impact.
The wave counts presented below are labeled under the presumption that the USD could get softer, while the EUR, GBP, and Metals could extend their gains further.
Most of the charts below are taken from the 2H or 4H time-frames, however, for a larger picture, one could see the previously posted “3rd Quarter Highlights & October Insights” article, but also the “October’s Volatility & Wave Analysis 16.10.2018” video.
* This article contains delicate information and should not be treated as investment advice or as a solicitation the trade. Risk must be considered.
DXY – 2H Chart
- Possible bearish pattern, with a probability of an Expanded Flat in Minuette (ii) (black), which could lead towards a bearish impulse in Minuette (iii) (black).
EUR/USD – 2H Chart
- Possible bullish pattern, with a probability of an Expanded Flat in Minuette (ii) (black), which could lead towards a bullish impulse in Minuette (iii) (black).
GBP/USD – 2H Chart
- Possible bullish pattern, with a probability of a Zig-Zag in Minuette (ii) (black), which could lead towards a bullish impulse in Minuette (iii) (black).
USD/JPY – 4H Chart
- Possible bearish pattern, with a probability of a Sharp Correction in Minuette (ii) (black), which could lead towards a bearish impulse in Minuette (iii) (black).
XAU/USD – 2H Chart
- Possible bullish pattern, with a probability of an Ending Diagonal in Minuette (c) (orange), which could lead towards a completion of Minute II (green) and a bullish impulse in Minute III (green).
XAG/USD – 2H Chart
- Possible bullish pattern, with a probability of a Sharp Correction in Minuette (c) (orange), which could lead towards a completion of Minute B (blue) and a bullish impulse in Minute C (blue).
WTI – 4H Chart
- Possible bearish pattern, with a probability of a Contracting Triangle in Minuette (iv) (black), which could lead towards a bearish impulse in Minuette (v) (black).
GER30 – 2H Chart
- Possible bearish sequence, with a probability of a Rising Wedge in Minute IV (red), which could lead towards a bearish impulse in Minute V (red).
US30 – 4H Chart
- Possible bearish sequence, with a probability of an Ending Diagonal in Minute C (blue), which could lead towards the completion of Minor 4 (red) and a bearish impulse in Minor 5 (red).
VIX – 2H Chart
- Possible bullish sequence, with a probability of a Sharp Correction in Minor 4 (red), which could lead towards the completion of Minor 4 (red) and a resumption for the volatility spike in Minor 5 (red).
Many pips ahead!
* This article contains delicate information and should not be treated as investment advice or as a solicitation the trade. Risk must be considered.
