Turning Points, Waves & Patterns
G20 Summit took place this weekend, and the outcome of the discussions held by the group of twenty finance ministers could trigger an increase in volatility. This would affect multiple sectors, as the FX Pairs and Precious Metals seem to be located at crossroads. Energy and Indices sectors have been having difficulties reinstating fresh bullish trends, with bearish sentiment hovering around them.
FED Chair Jerome Powell managed to tone down the greenback due to dovishness in his speech, and this caused immediate bullish reactions in EUR/USD and Gold.
Crude Oil has been continuously decreasing in in value, with West Texas Intermediate losing approx. $27 in value during the past two months. The OPEC meeting is awaited with high interest and an agreement for the production could dictate a new trend.
Indices are once again in focus, as important trend-lines are being retested in an attempt to break-out of bearish territory. US Indices would need to continue the bullish sequences in an impulsive manner and clear the waters before a bullish trend would be in play.
Structures & Technical Overview
In the lines below, screenshots with bullet-points are shared, with the focus remaining strictly on technical analysis.
* This article contains delicate information and should not be treated as investment advice or as a solicitation the trade. Risk must be considered.
Forex Majors
Dollar Index (DXY) – 2H Chart
- Labeled as an ABC (red) sequence, with Minutes A & B (red) complete and the first leg of Minute C (red) already developed.
- Lower trend-line could be breached, thus paving the way for a bearish impulse as a possibility.
EUR/USD – 2H Chart
- Labeled as an impulsive bullish Minor C (blue) leg, with Minute i and ii (green) already finalized.
- Minute iii (green) could commence a bullish impulse and could also present an extension.
GBP/USD – 2H Chart
- Labeled as an impulsive bullish Minor C (green) leg, with Minute i (green) finalized, and with Minute ii (green) presenting a complex Triple Three structure in Minuettes (w)(x)(y)(x)(z) (pink).
- Minute iii (green) could commence a bullish impulse and could also present an extension.
USD/JPY – 4H Chart
- Labeled as an ABC (red) sequence, with Minor B (red) complete and the first leg of Minor C (red) already developed.
- Ascending Channel could be breached, and a down-trend could commence in Minute iii (red), in an impulsive and sustained manner.
- Harmonic ABCD Pattern could indicate a Bearish Butterfly.
USD/CHF – 2H Chart
- Labeled as an ABC (red) sequence, with Minutes A & B (red) complete and the first leg of Minute C (red) already developed.
- A bearish impulse could begin, in an aggressive manner.
Precious Metals
Gold (XAU/USD) – 2H Chart
- Labeled as an impulsive bullish Minor C (blue) leg, with Minute i and ii (green) already finalized, and with Minuettes (i) & (ii) (black) already starting Minute iii (green).
- Minuette (iii) (black) could trigger a rally and define Minute iii (green), thus confirming a new trend.
Silver (XAG/USD) – 2H Chart
- Labeled as an impulsive bullish Minor C (blue) leg, with Minute i (green) marked as complete, and with Minute ii (green) about to finalize its Double Three complex corrective sequence.
- Minute iii (green) could commence an impressive rally, which could present an extension.
WTI – 4H Chart
- Labeled in a bearish impulse within Minor C (red), which presents an extension and a sustained sell-off.
- The downtrend could finalize with Minute V (red), with its last sub-wave Minuette (v) (black) possibly ending the bearish cycle in Minor C (red).
- Bullish divergence could trigger a new up-trend in Intermediate (C) (green).
Indices
Volatility Index (VIX) – 2H Chart
- Labeled in a “fear” cycle, with Minors 1 & 2 (red) complete, and with Minutes I & ii (red) possibly finalized as well.
- “Fear” spike could continue in Minute iii (red), which could cause a sell-off continuation in stocks and indices.
Nasdaq 100 (NAS100) – 4H Chart
- Labeled in a complex corrective structure in Cycle Wave IV (green), with a Double Three pattern in its Intermediates (W)(X)(Y) (purple) sub-waves.
- Intermediate (W) (purple) has been labeled as a simple ABC (red) correction in its Minor sub-waves, while Intermediate (X) (purple) has been labeled as a Running Flat pattern in its Minor sub-waves (blue ABC).
- Hidden (reversed) Bearish Divergence could synchronize with the upper trend-line (dotted black) of the Descending Channel.
- Significant trend-line (dotted red) which was previously breached is being retested, and a rejection could occur as a possible result, thus opening the possibility for more down-side.
- Minor C (red) could commence and could present a bearish impulse in a sustained sell-off.
* This article contains delicate information and should not be treated as investment advice or as a solicitation the trade. Risk must be considered.
Many pips ahead!