Saturday, 12 May 2012

ASX 200 continues to test the trend line drawn from the August 2011 lows

Will it rally, or will it break lower?

AUD/USD testing bottom line of trend channel

The AUD/USD could rally from nearby current levels. Alternatively, a decline through the trend line would indicate an acceleration of the recent down trend, and elevate the recently discussed Elliott Wave 3rd wave down potential to preferred status. The corrective A-B-C potential is still in with a shot, despite marginal new lows on Friday.

S&P 500 testing bottom of corrective trend channel, also testing support zone surrounding the 2011 highs

EUR/USD Head and Shoulders? Or trading within a corrective trend channel?

I have been illustrating the EUR/USD Head and Shoulders potential for some weeks now. It offers a measured target of 1.26.

And alternate potential is that the EUR/USD has been trading within a corrective trend channel for the past couple of months, and is due to rally from the bottom of it. Given how many other markets appear to be trading within corrective looking trend channels for the past couple of months, I don't think this potential should be taken lightly.

Gold remains in tight trend channel

Silver tests mid-channel line