Commodities are trading lower in this week, while US dollar is rising sharply after reversal lower on equities. One of the very weak markets is also gold, which definitely does not have a status of a safe-haven at this point of time. In fact, if we take a look on the intra-day sub-structure from 1641 high, then we can see some sharp bearish moves, which seems to be an impulsive pattern, but likely incomplete. From an Elliott Wave perspective, we believe that yesterdays sharp decline was wave three, so any bounce in the near-term will be only another corrective leg; wave four of an impulsive. We know that impulses are structured by five sub-waves, so more weakness is expected after a minor pull-back, ideally from 1565.

Our downside price objective is at 1530/1520; September lows.

Forex Analysis by Gregor Horvat at ForexPros. com