Aud/Usd; Wave 5) in Progress
Weekly chart trend: Mixed. Main price points: 0.6007, and 0.9848. Looking for: Wave 2/B top.
On the aussie weekly chart, we are looking for a corrective red wave 2/B since the market has fallen sharply down to the previous wave 1/A. Wave 2 or wave B usually retraces 61.8% of the previous leg, which means we may see a move up to the 0.8400 area before wave 2/B can be completed. On the RSI indicator, we can also see enough room for the market to move up into the “over-bought” area. The wave count will be valid as long the 0.9848 high holds.
Daily chart trend: Long. Main price points: 0.7701, and 0.8262 Looking for: Wave 5)
On the Aussie daily chart,prices are trading very close to this year highs, where a possible break of the 0.8262 area will be the key for a much higher levels of this year. We are looking at a blue wave 5), which should trade above the 61.8% of the Fibonacci retracement area with an impulse structure. The impulse structure means that this wave 5) must be made by another five sub-waves, which will be recognizable on a smaller time frame.
The more precise target of a blue wave 5) is shown at the 0.8595 zone.
4 Hour chart trend: Long. Main price points: 0.7701. Looking for: Wave III)
Aussie has been extremely bullish in the last couple of hours, as the market broke through 0.8262 yearly highs. On this pair, the structure is also impulsive, therefore new, higher levels are expected. The first target of that move, is shown around the 61.8% Fibonacci level, where it may be just a temporary top of a red wave III), before a corrective wave IV) gets on the way.
S&P Futures; Long-term Bullish; Near-term Bearish-Correction
Weekly chart trend: Mixed. Main price points: 665.50, and 1252.50. Looking for: Move to 50% Fibonacci level.
S&P Futures are very bullish on the weekly chart, after a powerful bounce off of the 665.50 support area that was created at the start of this year. This recent uptrend, however, could be a pull-back in wave 4 of a bearish impulse count, with wave 5 yet to come. In this case, wave 4 must not overlap the territory of wave 1.
The converse technical view is that it may also be a start of a new long-term uptrend, if we consider a possible three wave structure from the 1586 top to the 665.50 lows.
Current prices are threatening the long-term trend-line, where a break-out could signal higher prices in the following weeks. The 50% Fibonacci retracement area will be the first target after a break of the 38.2% retracement area.
Daily chart trend: Long. Main price points: 865, and 1030. Looking for: Wave 5
S&P futures are showing an impulse structure on a daily chart after a break of 957 in the past week. The previous corrective wave count moved into an impulse count, from 665 lows to current highs. Wave 5 of this wave count is technically set, as the prices have broken through the previous wave 3 highs, which is confirming a move into a higher wave 5 target around 1030 area. The target will be valid, so as long the 865, wave 4 lows holds.When we compare the daily wave count with a weekly count, it seems that a huge wave 4 (weekly chart) is not the case here, as we have an impulse structure on a daily chart. The wave 4 is a corrective wave and not impulsive wave, which means that a much higher level is easily possible to be reached later this year.
4 Hour chart trend: Long. Main price points: 865, and 1030. Looking for: Wave 2)
S&P futures are extremely overbought after an amazing rally from 865 lows to current highs. As we covered on the daily wave count; wave 5 is on the way, as the market broke through a long term weekly trend-line around 915 area. This break was the key for a move into new yearly highs with the black wave 5.Wave 5 is impulsive wave which means that is subdivided by a five smaller waves. Therefore the market may now be trading at the top of at the first red wave 1) with a correction in wave 2) to follow. Traders should be looking for three waves of pull-back, near to the previous blue wave IV trading area.
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