Market Forecast for 08-23-12

Summary: The EURCAD, EURAUD, EURUSD and XAUUSD (gold) have all reached our initial price targets on the upside.

Expect a correction to begin here or within 48 hours, then we will look for additional long entries. If you follow our strategy, you should be out of 1/3 to 1/2 of your positions, with stops trailing at, or better than break even (see Euro-Cad and Gold daily charts below).

eurocad daily chart and forecast

gold xauusd daily chart

As you can see from the EURUSD monthly chart (below), the Euro recently hit a major support zone which is the red horizontal line that bisects the two Andrew Median Lines at their intersection, and it hit both of the monthly chart's lower price forecast bands.

With that said, from those levels we normally expect 1 to 3 month rallies, at a minimum. The low was on 07/24/12, so we are one day short of one month and into our first resistance level. The monthly automated forecasts are still negative but the daily price projection has been spot on for price and time protections lately and still offers upside for the Euro. Stay tune to see how the Elliott Wave patterns and price forecasts develop.

ACTION: Expect corrections soon and reenter on  intra-day pullbacks as long as the 60 minute and/or 240 minute trends are up (see monthly and daily Euro charts below with analysis).

euro monthly chart

eurusd daily chart

The USDCHF (mirror opposite view) reached the first price forecast target as mapped out in the manually drawn forecast. As you can see on the daily chart below, it still has lower price targets but this is a nice place to expect a short-term retracements (see daily Swissy chart below).

usd-chf daily chart with analysis

S&P500, met resistance at Monday's high as forecasted, and had a small correction. At this point, I am not clear whether stocks will again breakout to the upside and accelerate up until mid to late October, as some cycles suggest, including the ED interest rate futures contract shifted forward 6 months that we have been showing you since May, which the market has been following nicely, or if the SP500 will have a deeper correction here. Stay tuned…

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