Eur/Usd: Bearish Wave Count
4 Hour Chart trend: Short. Main price points: 1.3930, and 1.4337. Looking for: Wave III) targets
The dollar is trading higher against the euro after a volatile turning point on Friday in reaction to the NFP report. We can see that the 76.4% retracement (1.4719 – 1.2456) held very well in the past week, with prices already trading 300 pips below it. The market has also broken through the blue support line, that we were also monitoring for a bearish wave count confirmation. The recent break at the 1.3930 area should lead us into a lower wave III) target area which is shown at 261.8% of the wave II) extension. Traders may be looking for a corrective wave IV) in that area, before the market slides lower. Our directional movement indicator is in a short mode, as the +DI (red line) is trading above the ADX (green line), while the -DI is trading below ADX and +DI.
S&P Futures: Wave 4 top
4 Hour Chart trend: Short. Main price points: 930, and 957. Looking for: Break through 930 support.
S&P futures traded perfectly into our 950-960 resistance area on Friday after the break of red wave III) highs. The market has made a powerful decline from that area, which suggests that wave V) of black C of blue 4 is complete. Traders, however, still need to wait on a down-trend confirmation which will appear once 922 support is taken out. Then we will be looking for a move lower to wave B lows during the next few weeks, if the current 957 highs manage to hold.
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