Hello Traders
this weekend charts will be very important as the markets started to recover a bit from the summer long choppiness and offer some volatility which i expect to last till November before we get into the holidays seasons thin liquidity again.
-- (( S&P 500 ))
FIRST thing i wanna look at is the Equities charts , as shown in the chart attached here that the s&p 500 looking like its forming an ending diagonal pattern which might break down very soon , notice also that the momentum is fading from this rally and its signaling at least a short term correction will be on the way very soon which will be correspondent with the other scenarios i ll go through with the EUR AUD charts .
i m expecting a spike into the top of this pattern and a reversal into the support zone shown on the chart and then the trend will decide if it ll bounce and start a new leg up or it ll break through the support zone and maybe into a new low , i m not concerned with what it ll do by then as i m looking into the medium and short term moves here to setup my EUR And Possible AUD next trade ,so the long term is not my concern for now . (( make sure u click on the chart to maximize it and read all the details written on it ))
--- (( Dollar Index ))
As shown in the chart we could be in wave 3 up already but the quike rejection off the 83 level might suggest that we still in wave 2 correction which will take the trend to wave c down before a bounce .
--- (( AUD.USD ))
After the correction that took it down into the test of the trend line then bounced into a head and shoulder pattern which took Affect after it break up from the neCkline as shown in the Chart and warned about it few days back on the twitter , the price achieved 161% Fib Ext. of this head and shoulders pattern.
currently the Aussie looking pretty much like the S&P 500 chart and The scenario i reviewed , the trend is getting weaker and weaker and the momentum is fading as it approaches the resistance zone which lies between the 161% - 200% FIB EXT. of this H&S Pattern and the yearly highs at 0.9385 , i dont see a break up from the resistance zone i shown on the chart between 93-9380 without at least a correction lower , which corresponds with a correction lower in the equities as shown in the previous review.
---- (( EUR.USD ))
i m looking into 2 possible scenarios here in the Eur
-First sceanrio ,as shown in the chart , the Eur might have completed a 5 waves down from the top into the 1.2650 area and that bounce up is into wave 2 which already finished A % B phase and going into the C wave final push up into the resistance zone shown on the chart before reversal , a test of the 1.277 level will validate this count , and this count is also correspondent with the final push up in equities scenario and the Aussie push up into resistance zone scenario i reviewed earlier in this post
- Second scenario , as shown in the chart , puts us into wave 3 down already as we might have finished wave 1 and 2 and into wave 3 of 3 down already , as far as the top at 1.2765 isn't violated , then this count is in play although i m still more into the first scenario but an immidate weakness is very possible too
i attached another eur chart which shows the current consolidation similar to what we witnessed before and that EUR bases dont form in such patterns and a break down is very expected
as both scenarios pointing down but within different time intervals , i ll be looking to short of the resistance area between 1.2780-1.2820 and target a break down , if the trend breaks down immediately , i ll be looking to short and bounce up to take advantage of this wave 3 down .
---- (( CAD.USD ))
i rarely setup a trade on that pair as its daily chart looking so choppy and consolidation took place for long time now and no clear trend is identified there , but what i found interesting is that i might wanna take a trade into this consolidation by buying into the strong support zone as shown in the chart and sell into the range top as shown on the chart too .
I welcome ur comments and Questions :)
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