Short-term Elliott wave analysis on EURUSD

EURUSD is in a corrective phase. Price was expected to move higher as wave B and turn lower towards the 61.8% Fibonacci retracement and wave C. Price did exactly that and now it is important for the bullish scenario to see price reverse to the upside.

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EURUSD has made a three wave correction this far towards the 61.8% Fibonacci retracement as expected. Now for this bullish wave scenario to be valid, we need to see price reverse to the upside. Another 5 wave upward move is expected to unfold from current levels. Support is at 1.1030 and this scenario will lose its strength if this level is broken downwards. On the contrary, this bullish scenario will increase its chances of success if price breaks above the B wave high. The price action of this week will tell us more of what to expect for EURUSD....1.13 or 1.09?The material has been provided by InstaForex Company - www.instaforex.com

Weekly Gold analysis

Gold price got rejected at the $1,490 resistance area and remains inside the weekly bearish channel its been in since the summer top. Gold price bounced as expected by our analysis towards $1,480-90 area. Gold back tested the important resistance area of $1,490 which was previously an important break down area.

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Green lines bearish channel

Gold price weekly candlestick is a bearish one as price pushed towards channel resistance and price turned around and ended the week near its week lows. Bulls need to recapture $1,490-$1,500 level in order to hope for new highs above $1,557. Major support is found at last week's low around $1,450. A weekly close below that level will open the way for a move lower towards $1,400-$1,370. We warned in our last analysis that Gold was at a very important resistance level. The rejection that followed was a bearish sign. Bears now need to break below $1,450 in order to confirm they are under control of the trend.

The material has been provided by InstaForex Company - www.instaforex.com