Elliott Wave View: Right Side in XLF Remains Higher [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

Financial Sector ETF (XLF) shows a bullish sequence from December 26, 2018 low favoring further upside. Short term Elliott Wave view suggests the pullback to 26.9 on June 25, 2019 low ended wave 2. The ETF has rallied higher within wave 3 with the internal subdivided as a 5 waves impulse Elliott Wave structure. Up from 26.9, wave (i) ended at 27.21 and wave (ii) pullback ended at 26.93. The instrument then resumed higher in wave (iii) towards 28.05, wave (iv) pullback ended at 27.71, and wave (v) ended at 28.27. The 5 waves move higher ended wave ((i)) of 3 in higher degree.

Wave ((ii)) pullback is in progress to correct cycle from June 25, 2019 low before the rally resumes. Internal of wave ((ii)) is unfolding as a double three Elliott Wave structure where wave (w) ended at 27.81 and wave (x) ended at 28.23. Expect the ETF to extend 1 more leg lower towards 27.5 – 27.78 to end wave (y) of ((ii)) before a 3 waves bounce at least. We don’t like selling XLF and expect buyers to appear in 3, 7, or 11 swing as far as pivot at 26.9 low stays intact in the first degree.

XLF 1 Hour Elliott Wave Chart

XLF 1 hour Elliott Wave Video

Interested in active FX or CRYPTO Elliott Wave labeled charts on a daily basis? Now it's your time; we have a SPECIAL offer; 50% Off on FX and Crypto markets. Check Elliott Wave Forecast website for more details.

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold jumps above $5,000 as China's gold buying drives demand

Gold price rises to near $5,035 during the early Asian session on Monday. The precious metal extends its recovery amid a weaker US Dollar and rising demand from central banks. The delayed release of the US employment report for January will be in the spotlight later on Wednesday.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.