Market Forecast for 08-06-12

EURUSD: The Euro blasted off from our forecasted low. If you took the actual suggested trade, you should have about 200 pips profit. Consider staying with it until its upper targets, mentioned last week, in the 1.2770 area is reached, and/or buy the dips as long as the 60 and/or 240 minute trend is up, until the price is near the 1.2660-1.2770 areas. Before that happens, the Euro would first have to clear the 1.2530-40 area, which is the longer-term Andrew's pitchfork resistance on the 240 minute charts. See the EURUSD charts below (daily and 240-minute time frames).

eurusd daily chart with complete analysis

euro 240 minute chart

US Stock Market: S&P500 has popped again from support to its 3 tap resistances line, that has not been breached for the past 5 months. The market is more likely to sell off from here again than blast through it, because right now we see a 5 wave up pattern that looks complete on the 240 minute chart – so at least we should see a pullback one way or the other. Still looking for a top in this area unless there is a thrust above 1392 to 1398 area for several hours to clear stiff resistance. See both S&P charts below.

sp500 daily chart

s&p500 240 minute chart

XAUUSD: Gold has moved up and corrected very closely to our forecast. We will now see if the dip holds and if gold can break above 1640 for a potential run to 1711 area, or if it stalls on this rally, which would then form the Wave E of an Elliott Wave wedge and heads south again. We will know in a day or two the likely course and offer our guidance on XAUUSD.

gold xauusd daily chart

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