ABOUT THE AUTHOR: Avi Gilburt is a widely followed Elliott Wave technical analyst and author of ElliottWaveTrader, a live Trading Room featuring his intraday market analysis (including emini S&P 500, metals, oil, USD & VXX), interactive member-analyst forum, and detailed library of Elliott Wave education.
Last weekend, I was questioning whether wave v of (3) of 3 has finally topped. The jury is still out, as it is still possible for the market to reach one more higher high before wave (4) begins.
FBS CopyTrade Launches a New Card Scanning Feature!Go to article >>
This past week, the market bottomed exactly at the level I noted in our Live Video sessions during the week. As often as I see this happen, it still amazes me how markets abide by these Fibonacci extensions, quite often to the penny, such as we saw this past week in the DX. And maintaining support at that low can still allow the market to push higher to complete a final 5th wave extension in this wave v of (3).
However, as you can see from the attached 144 minute DX – futures – chart, should we break down below last week’s low, it is a clear indication to me that wave (4) is in progress, which will likely be taking us down to the 90-92 region.
But, please allow me to remind you that such a drop would likely only be a precursor to the market setting up to target levels over 100 for wave (5) of 3.
This article is part of the Forex Magnates Community project. If you wish to become a guest contributor, please get in touch with our Community Manager and UGC Editor Leah Grantz email@example.com and fill out this form