Analysis for July 28th, 2014
DJIA Index
Index starts correction. After forming triangle pattern inside wave (4) and impulse inside the fifth wave, price is forming the initial descending impulse inside wave (A). Probably, price will be falling down over the next few days.
As we can see at H1 chart, wave 5 formed diagonal triangle. On minor wave level, bearish impulse was formed inside wave 1. Consequently, this impulse was corrected by the second wave. In the near term, price is expected to continue falling down inside the third wave.
Crude Oil
Oil is still being corrected. Probably, after the bearish impulse formation inside wave 1 or A, zigzag will be formed inside wave 2 or B. During the week I expect the further local ascending movement leading to the breakout of local minimum.
More detailed wave structure is shown at H1 chart. Probably, after the formation of impulse inside wave [A] and zigzag inside wave [B], price is forming the impulse inside wave [C]. In the future, during corrections I am planning to open additional trades.
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Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
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Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.