Wave 3 is currently unfolding and expected to lead to new highs.
This wave typically represents the strongest phase of the impulse structure.
The rally is projected to surpass the previous $52.64 high.
However, there remains the possibility that the current move is part of a larger correction—possibly wave [b] of 2 not yet completed.
Key support rests at the $45.14 low.
Invalidation level is set at $42.21.

XLF Elliott Wave technical analysis

Function: Major Trend.

Mode: Motive.

Structure: Impulse.

Position: Wave (iii) orange.

Direction: Uptrend.

Details:

Wave (ii) appears to have completed but could evolve into a flat structure.
The low of wave (ii) acts as the critical support level.
The low of wave [c] of 2 is also key support.
Breaching the $47.89 high offers initial confirmation, though it remains insufficient alone.
The projected end of wave (iii) targets a price beyond $51.00.
Key support remains $45.14.
Invalidation level: $42.21.

Conclusion:

The ongoing XLF rally is likely wave (iii) of a developing wave [i] within wave 3. This setup presents an attractive opportunity for ETF traders looking to go long. Price action is expected to exceed the $52.64 high, with $51.00 as the minimum wave (iii) target. Strict adherence to Elliott Wave rules and monitoring key invalidation levels is essential to avoid false setups and unnecessary losses.

Technical analyst: Siinom.

XLF Elliott Wave technical 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.