Coffee Elliott Wave technical analysis [Video]

Peter Mathers TradingLounge

Coffee Elliott Wave analysis

Coffee breached the February 2022 previous high to continue the long-term bullish corrective cycle from May 2019. In the long term, the commodity could reach 317 which is about 28% of the current price level. Thus, buyers might consider buying the dips along this path.

The long-term bullish corrective cycle started in May 2019. Aside from triangles, corrective structures are often subdivided into 3-waves. The first wave ended in February 2022 - cycle degree wave w. A pullback for the cycle degree wave x followed and ended in January 2023. From there, the cycle degree wave y began.

The daily chart captures the wave development of the cycle degree wave y - subdivided into wave ((W))-((X))-((Y)). Wave ((W)) and ((X)) ended already and price is in ((Y)). ALong ((Y)), the price is currently in a pullback for ((b)) of Y of (W) of ((Y)). This summarizes that the upside is still favored for Coffee and prices should make fresh rallies from pullbacks of different degrees.

The H4 chart shows that ((b)) is not yet complete. It’s probably in its 3rd sub-wave i.e. wave (c) of ((b)). While still developing, we are not sure yet how it’s going to end. However, it should finish above 221.2. If the price turns upside and breaches ((a)) high, then the expectation for further rallies from the dip increases significantly.

Technical analyst: Sanmi Adeagbo.

Coffee Elliott Wave analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.