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Asian markets were mostly higher as stocks followed a positive close on Wall Street. European markets also gaped higher, and now the question is, if this rally is only temporary move or start of something bigger?

Well, on S&P futures, move from the lows is still only in three waves, so any larger bullish reversal CANNOT confirmed. In fact, we see an open gap from Sunday, which usually when is filled trying to cause a reversal. With this being said, our larger view remains to the downside, and an impulsive fall towards the support line should confirm that scenario.

S&P August 10 2011 Elliott Wave Analysis


Guest post by Gregor Horvat

On the Euro technically there is no big change; we are still monitoring a huge incomplete triangle on a daily with wave D in progress shown on 4h chart below, since price reversed from 1.4055 support in the past week. Currently, pair seems to be trading higher in wave (c) that should be a final leg of wave D, so watch out for reversal once pair moves close to wave (a) highs and the red trend line resistance area.

EUR USD Elliott Wave Analysis August 10 2011

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