Elliott Wave Analysis by EWF

﴿فَقُلْتُ اسْتَغْفِرُوا رَبَّكُمْ إِنَّهُ كَانَ غَفَّارًا (10) يُرْسِلِ السَّمَاءَ عَلَيْكُمْ مِدْرَارًا (11) وَيُمْدِدْكُمْ بِأَمْوَالٍ وَبَنِينَ وَيَجْعَلْ لَكُمْ جَنَّاتٍ وَيَجْعَلْ لَكُمْ أَنْهَارًا﴾ [نوح: 10-12]،

Elliott Wave Analysis: Further Strength in USDJPY

USDJPY short term Elliott Wave view suggests that the decline to 104.54 low on March 26 ended Intermediate wave (3). Wave (4) correction is in progress as a double three Elliott Wave Structure. A double three is a 7 swing corrective structure with WXY label. In the case of USDJPY, minor wave W of (4) ended at 107.01 and minor wave X of (4) ended at 105.62. As near term pullback stays above there, expect pair to extend higher within wave Y of (4).

Subdivision of Minor wave W of (4) in USDJPY unfolded as a zigzag Elliott Wave structure where Minute wave ((a)) ended at 105.9, Minute wave ((b)) ended at 105.29, and Minute wave ((c)) of W ended at 107.01. Subdivision of Minor wave X of (4) also unfolded as a zigzag Elliott Wave structure where Minute wave ((a)) ended at 106.09, Minute wave ((b)) ended at 106.45, and Minute wave ((c)) of X ended at 105.62.

Minor wave Y of (4) is currently in progress as a double three Elliott Wave structure where the rally from 105.62 ended at 107.49 in Minute wave ((w)). Expect pair to pullback within Minute wave ((x)) in 3, 7, or 11 swing to correct cycle from 4/3 low before the rally resumes.

USDJPY Elliott Wave 1 Hour Chart

USDX Elliott Wave View: Extending Higher As Impulse

USDX Elliott Wave view in short-term cycle suggests that the decline to 89.22 ended Intermediate wave (B) as Elliott Wave Zigzag correction. Above from there, Intermediate wave (C) remains in progress as Elliott Wave Impulsive sequence with extension looking for further extension higher. The internal distribution of each leg consists of 5 waves structure with extension in the third wave thus we favor the structure to be an impulsive sequence.

Up from 89.22 low, Minor wave 1 of (C) ended in 5 waves at 89.66, Minor wave 2 ended as a Flat at 89.45 low. Then above from there Minor wave 3 remains in progress. The internal of Minor wave 3 is unfolding as an Impulse Elliott Wave sequence with extension where Minute wave ((i)) ended at 89.72, Minute wave ((ii)) ended at 89.51, Minute wave ((iii)) ended at 90.47 high, and Minute wave ((iv)) ended at 90.21 low. Above from there, Minute wave ((v)) of 3 remains in progress looking to extend higher 1 more push towards 91.17 – 91.40 area approximately to end 5 waves in Minor wave 3. Afterwards, the index should do a Minor wave 4 pullback in 3, 7 or 11 swings before further upside is seen. We don’t like selling it into a proposed pullback.

USDX Elliott Wave 1 Hour Chart

$AAPL Apple Expanded Flat from the 1/18/18 highs?


Longer term on monthly and weekly charts it obviously appears that Apple remains in an uptrend. I will try to explain where the instrument can reach in the expanded flat from the 1/18/18 highs. I will also provide an alternate scenario that will offer a similar buy zone before the next leg higher. Apple’s stock made new highs in January however we think that was part of a larger correction.

With the possible expanded flat from the January 18 highs, the Elliott Wave structure would be 3-3-5. That means the leg lower from the 1/18/2018 highs to the 2/9/2018 lows was three swings and not an impulsive five waves. From the 2/9/2018 lows, the same can be said for the three swing bounce into the new highs on March 13th 2018. From those highs, this leaves the incomplete structure still needing the wave three of the impulse to complete along with a relatively shallow bounce in wave four followed with a final wave five low that would show momentum divergence compared to the wave three. The conclusion is below the chart.

$AAPL Apple Daily chart


In conclusion.

The target area for the the expanded flat is shown in the blue box on the chart and is derived from a Fibonacci extension measurement using a chart platform Fibonacci extension tool. With the beginning point being at the 1/18/2018 highs, go down to the 2/2/2018 lows as point #2. From there up to the 3/13/2018 highs being point #3. That will give the extension area shown on the chart as the potential buy zone.

Finally as I mentioned in the first paragraph an alternative structure and target area will be a simple three swings lower from the 3/13/2018 highs. That would be a double three correction which counts as 3-3-3. This target area is not shown on the chart but I will tell you how to get it. Using the charting platform Fibonacci extension tool in the same manner as before. Begin at the 3/13/2018 highs as point #1 on down to the April 2nd lows as point #2. From there point #3 will be at the April 17th highs. That gives an extension area for a double three correction at the 159.66-147.74 area.