Hi traders,
The GBPUSD (now at 1.31182) shows extreme weakness and should resume the downtrend to 1.30.
ELLIOTT WAVES
The monthly and weekly charts show that the Pound is unfolding "major wave five" (downward) with a very long term target below 1.18.
The daily, 4-hours and 1-hour charts reveal that we are witnessing the last leg of the very minor wave 5 (downward) that should take the Pound to 1.30.
Monthly chart. Click to enlarge
Weekly chart. Click to enlarge
Daily chart. Click to enlarge
4-hours chart. Click to enlarge
1-hour chart. Click to enlarge
Hi Traders,
The Dow Jones (now at 25375) seems to defy the good fundamentals of the US economy. In fact, it is now staging a correction heading to the area 25000-24700
ELLIOTT WAVES
As you can see in the weekly chart, the DJ30 is unfolding a typical wave four, which is made of an a-b-c pattern. Wave a (down) and wave b (up) are completed and wave c (down) just started its way down.This is even clearer in the daily chart.
Finally, the 4-hours chart reveals the completion of wave b and the start of the new downtrend with the first two waves: wave 1 and wave 2. NOTE: the strong reversal candlestick pattern made of the last three candles.
Weekly chart, click to enlarge
Daily chart, click to enlarge
4-hours chart, click to enlarge
Hi Traders,
Both the British FT 100 index (now at 7620) and the Australian SPI 200 index futures (now at 6230) might be aiming for a correction.
ELLIOTT WAVES
The fundamentals for this turnaround seem to be exclusively political for both countries but, on the technical side, the two indices might head to a similar destiny despite a different wave count.
FT 100 index
The daily and 4-hours charts show the completion of wave four. A drop to the 7280 area might follow soon to make room for wave five.
The weekly and monthly charts display the completion of five waves up, signalling a top and the end of a major wave count. A correction should follow.
Finally, the weekly chart reveals 4-5 doji candles. This is called "breakaway pattern". It's a continuation pattern aiming to continue the downtrend initiated after the top at 7884.6
SPI 200 index futures
The SPI 200 (now at 6230) could still end its course around 6330 - see the top blue line in the monthly chart. In meantime, a correction might be under way.
The daily and 4-hours charts show the completion of five waves as well as a dangerous double top. A drop to the 6098 or 6076 area might occur.
The monthly and the weekly chart shows that the huge a-b-c might not be completed yet and this correction might be only temporary.
FT 100 CHARTS
FT 100 - Monthly chart, click to enlarge
FT 100 - Weekly chart, click to enlarge
FT 100 - Daily chart, click to enlarge
FT 100 - 4-hours chart, click to enlarge
SPI 200 CHARTS
SPI 200 - Monthly chart, click to enlarge
SPI 200 - Weekly chart, click to enlarge
SPI 200 - Daily chart, click to enlarge
SPI 200 - 4-hours chart, click to enlarge
