Weekly analysis- Elliott waves for Forex correlation analysis – Expect a possible bearish momentum in Gold

As previously forecasted, Gold markets entered into consolidation upon hitting the support level $1244. Unless there is a clear breakout below this level, $1244, we expect a possible rebound from this support level to go long with an ideal target at $1308. Any progression below $1241 will culminate into a possible bearish price rally but should not go beyond $122. We hope to trade this pair alongside Silver, the latter commodity entered into a similar consolidation and will likely follow gold’s price action during this week.

Just as in the other commodity, Gold, silver markets entered into consolidation upon hitting the support level $17.25. The current chart set up and structure is pretty much neutral and chances of heading to either sides are almost equally, thus, in the meantime, we choose  wait for a clear breakout below $17.25 to go short, while any clear rejection from this support level, $17.25, will lead to a possible bullish price movements towards $18.47 or even higher. This commodity should be traded alongside Gold, these two commodities will have a similar price action during this week.

As previously forecasted, the Corrective wave (4) retraced to the lower side but is yet to reach our support level $48.51. Although we expect further acceleration the upper side, we choose to sit on sidelines and only buy the impulsive wave (5). This means, we’re waiting for the current corrective rally to end around $48.51 to give us low risk buy opportunities . This view can only be invalidated in case the current downward rally end up breaking below $47.45, if the latter is the case, then a momentum to the lower side is highly likely.