Good day everyone, as you know, energy is back on the rise, the is moving higher as a safe haven, while metals and stocks are seeing fresh downside. This comes after US President Trump said on Wednesday evening that they may hit Iran extremely hard in the next two to three weeks, even mentioning “bringing them back to the stone ages.” This is clearly negative news, and the escalation still looks far from over.
That’s why investors are worried, and the risk-off sentiment makes sense here, especially ahead of tomorrow, along with upcoming holidays in the US and Europe on Monday, which will likely keep institutional players away from new positions. At this point, holding cash seems like the safest option.
Looking at the wave structure, we are recovering nicely from the 99 area. It still looks like a wave four, but it may now be unfolding as a triangle. Of course, there is still room for a deeper pullback, but overall, this appears to be corrective price action from the March 13th highs.
It’s likely just a matter of time before this pattern completes and pushes price higher again. There is a chance we could see fresh highs next week, especially if markets remain sideways during the holiday period. Key support on dips is seen between 99.50 and 98.50.
