Thursday, June 20, 2013

Lower Stock Market Is Pushing The USD Higher Against The Majors-Elliott Wave

European stock market is sharply lower today following yesterday sell-off on US equities after Ben Bernanke who said yesterday that if the economy continues to improve, it could start to wind down its $85 billion a month asset-purchasing program towards the end of 2013 and end it in 2014.
Metals are moving sharply lower, with gold testing now psychological level at $1300 and silver $20. We could see some technical bounce from here especially if we also consider Elliott Wave pattern which suggests that price is at the end of wave iii), now testing 261.8% Fibonacci support.  As I know a lot of our clients were shorting gold since June 10. If you are one of them, then I suggest you to close some % and make very tight stops.
GOLD 1h

E-mini S&P500 is also looking weak since yesterday where we can count now five waves down from latest high. This is impulse that confirms the change in trend; from bullish to bearish mode.
E-mini S&P500 1h

EURUSD also extended its decline in the last hour or so, which means that correlation between EURUSD and stocks are normal for now. USD is safe-haven in risk-off mode so normally traders will be interested in Long USD opportunities.

Market Correlations 1h 

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