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EUR/USD, Gold Lower After Bernanke – Elliott Wave Analysis

The European stock market is sharply lower today following yesterday sell-off on US equities after Ben Bernanke said that if the economy continues to improve, it could start to wind down its $85 billion a month asset-purchasing program towards the end of 2013 and end it in 2014.

Metals are moving sharply lower, with gold testing now the psychological level at $1300 and silver $20. We could see some technical bounce from here especially if we also consider the Elliott Wave pattern which suggests that the price is at the end of wave iii), now testing 261.8% Fibonacci support.

As I know a lot of our clients were shorting gold since June 10. If you are one of them, then I suggest you to close some % and make very tight stops.

GOLD 1h

gold 06-20-13-1h

E-mini S&P500 is also looking weak since yesterday where we can count now five waves down from the latest high. This is an impulse that confirms the change in trend; from bullish to bearish mode.

E-mini S&P500 1h

sp 06-20-13-1h

EURUSD also extended its decline in the last hour or so, which means that the correlation between EURUSD and stocks is normal for now. USD is safe-haven in risk-off mode so normally traders will be interested in Long USD opportunities.

Market Correlations 1h

overlay 06-20-13-1h

Gregor Horvat

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!