Elliott Wave Analysis: AUDUSD, VIX And NASDAQ

By: Gregor Horvat | Wed, Nov 23, 2016
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Originally posted at 8:30 am PST.

AUDUSD is turning down now, finally breaking out of an upward channel which suggest that corrective fourth wave can be finished at 0.7444 and that market is headed south for 0.7300 once again. For now invalidation level remains at 0.7511.

AUDUSD, 1H

AUD/USD 1-Hour Chart

Do you remember VIX index from a start of November, when we said that market may turn down after a three wave recovery into a trendline resistance? Well, price is now 50% lower while stocks are at new highs. But it's important to understand that this current cycle is slowly coming to an end. In other words, VIX could form a bottom in the next few months which means that stocks could turn down. And if we add the following NASDAQ chart with an ending diagonal, then we definitely should be aware of a limited upside and maybe even very strong turning point in 2017.

VIX, Daily

VIX Daily Chart

Nasdaq, Daily

NASDAQ Daily Chart

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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