AUD/JPY 2. Gann Prices

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The downward consolidation we have seen in the AUD/JPY has taken the form of an Elliott wave formation known as a descending triangle. After Gann prices are taken into consideration, we notice that each consecutive wave lower of the triangle is 22.5 degrees lower than the preceding high.

The previous AUD/JPY post regarding Gann time cycles, highlight a specific degree of time. If this time cycle is in fact mature, then we obviously see an amazing symmetry between both time and price.

If you have any questions, please feel free to leave a comment.

Regards,

Justin Neustaeter

Nasdaq Wave 5 Lower

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AUD/JPY

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This chart of AUD/JPY includes Gann time cycles which display a correlation of 45*degree day cycles. After the AUD/JPY has a significant downward correction, price re-tests this low and reverses course on the exact day on which the corresponding 45* time cycle matures. The price increase following each 45* day cycle maturity is approximately 58% of the previous rally. This allows us to not only forecast the next expected price move, but it also gives insight into the fractal nature of capital markets.

The upward price target is approximately $94. Due to the valuation of the AUD/JPY and the long time horizon on which the Gann price estimates are conducted, an exact price is very difficult to asess. Given the difficulty in determining exact price targets, we will instead focus on the time cycle itself. The time cycle in focus matures on June 23/2011. IF THE CURRENT GANN TIME CYCLE PATTERN of MATURITY CONTINUES for ONE LESSER DEGREE than the previous rally, then we should see an increase of atleast 10.5% in the AUD/JPY throughout this summer.

Heating Oil Futures

U.S. Dollar Index--Hourly

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This shorter time frame analysis of the DXY also include Gann Time Cycles.

18/06/2011 is the next minor cycle termination date. Over the following days if we remain above the downside inflection level of 73.73 then we should have a rally up to atleast 74.55. Targets in extension of 74.55 include 75.45 and 77.29. At this point if we fail to remain above 73.73, then an additional leg lower down to 71.20 can be expected.

U.S. Dollar Index--Daily

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The following chart is overlayed with Gann Degree Time Cycles. The next major time cycle terminates on August 5, 2011. The DXY price targets include reaching $77.29 by Aug 5, 2011. Shorter time frame analysis to follow.

No. 11 Sugar Futures Update

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The "Geometry of Time & Price" I spoke of in the previous Sugar post, turned out to be a great trade. I bought 1 lot or 10k pounds of sugar. As for profit, I didnt take the full 300 points it was good for but I did take 200 points.

With the daily close today coming in under the earlier mentioned upside target, we can confirm that upside resistance is met. Currently I am not going to run the algorithm again to arrive at another predictive scenario for No. 11 Sugar.

It certainly is fascinating to witness the predictive power of complex polynomials.

To view the previous Sugar forecast visit : http://1618analytics.blogspot.com/2011/05/gann-time-and-price-sugar-futures.html