Weekly waves: EUR/USD, Bitcoin, and gold

• XAU/USD is in a strong bullish impulse and seems to be in a wave 3 (gray). The main bullish targets are $2150 and $2250.

• The EUR/USD is in a downtrend but price action is showing serious bullish signals: the EUR/USD made 5 waves up (gray), which indicates a wave 1 or A.

• BTC/USD remains in the triangle pattern as long as price action respects the top and bottom. The triangle looks more bullish due to the strong push up in wave A

Our weekly Elliott Wave analysis reviews the EUR/USD, the Bitcoin cryptocurrency, and this time around, we add Gold (XAU/USD) instead of the US30 chart.

The stock markets have been moving slowly whereas the Gold chart seems to be making an interesting retracement within a strong uptrend. 

EUR/USD

• The EUR/USD made 5 waves up (gray), which indicates a wave 1 or A of a larger ABC zigzag pattern (pink).

• A bearish ABC retracement (gray) seems to be taking place within wave 2 or B (pink).

• A break (green arrows) above the bearish channel could indicate the start of wave 3 or C (pink) towards Fibonacci targets.

• A break below the bottom, however, invalidates the expected bullish price swing and indicates a continuation of the downtrend towards 1.0750.

BTC/USD

Bitcoin (BTC/USD) seems to be building a triangle chart pattern:

• The triangle looks more bullish due to the strong push-up in wave A (pink).

• Price action could be completing an ABCDE (gray) within wave B (pink) now.

• A break above the resistance (orange) lines could confirm the start of wave C (pink).

• The main targets are the Fibonacci levels at 48k and 52k. A break below the support (green) line could indicate a larger retracement. A wave C (C2 gray) could finish at the 78.6% Fibonacci retracement level.

• A break below the bottom, however, would invalidate the ABC (pink) pattern.

Gold (XAU/USD)

XAU/USD has been in a strong rally ever since the retracement found support around $1750:

• The strong bullish impulse seems to be wave 3 (gray).

• The bearish retracement is probably a wave 4 (gray).

• The wave 4 remains likely as long as price respects the shallow 38.2% and 50% Fibonacci retracement levels.

• A deeper retracement places the bullish analysis on hold.

• The wave 4 usually is lengthy and choppy. A triangle pattern could emerge here.

• The main bullish targets are $2150 and $2250.

The analysis has been done with the indicators and template from the SWAT method simple wave analysis and trading. For more daily technical and wave analysis and updates, sign-up to our newsletter