Analysis for September 15th, 2014
DJIA Index
The DJIA Index continues forming diagonal triangle inside wave 5. It looks like the price is forming an ascending zigzag pattern inside wave [5]. In the future, after completing a local correction, the market is expected to form a bullish impulse inside wave (C).
More detailed wave structure is shown on H1 chart. The DJIA Index is still forming a bearish impulse in wave C, inside which the price is falling in the third wave. During a local correction, I opened a sell order with the stop loss at the latest maximum.
Crude Oil
Oil is still moving inside a descending channel. After rebounding from the channel’s upper border, the price started forming the fifth wave. It looks like the market is going to reach several new lows this week, that’s why I continue selling.
As we can see at the H1 chart, Oil had formed a descending wedge pattern inside wave (1). After that, the price completed wave (2) quite fast in the form of zigzag and started falling quickly inside the third wave. Possibly, the market may reach a new low on Monday.
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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
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
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.