Elliott Wave Analysis on USD Index and GOLD

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USD Index

USD index has turned down recently, into a new correction that should be made by three waves. We are tracking wave (4) which is part of an ongoing motive structure in big black wave V that could reach levels around 103-104 in the months ahead. Invalidation level is at 93.83; as long this one holds, the trend is up.

USD Index, Daily

index d

GOLD

An overlapping decline since 2013 looks like an ending diagonal pattern. That’s a very big and important reversal structure which is telling us that the bearish trend can be near completion if we consider that metal has already made three needed sub waves down within a black wave 5. We however still need an impulsive reaction back to around 1191 figure before we can call a “low in place”. Ideally this bounce will occur in 2016.

GOLD, Daily

gold d

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast. A small percentage of ending diagonals appear in wave C position of A-B- C formations. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

An Ending Diagonal Pattern:

ending diagonal

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About Author

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!

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