Tapping into the

Power of Impulse Waves

June 2, 2005
Steven Hochberg,
Co-editor, The Elliott Wave Financial Forecast

Elliott Wave International, Inc.

P.O. Box 1618
Gainesville GA 30503
(800) 336-1618 or (770) 536-0309
Fax (770) 536-2514
www.elliottwave.com
[Short Term Update, 2/9/05]: The above chart shows that gold has declined from the December 3 peak in five waves, wave
(1) of an eventual larger decline. In Elliott, once five waves are complete a market will always retrace part of the previous
move in a three-wave pattern, or some variation thereof. Prices have come down to the midline of a parallel trendchannel
formed by wave (1) down, and to the 200-day moving average, which many institutions and trend-followers watch closely.
Also note the pattern in the Australia Dollar Index in the top panel of the chart. Historically the Australia Dollar has been
perceived as a commodity-based currency, which at times will tend to move with gold, more or less. It appears that the
Australian Dollar is mopping up the final subdivisions of a fourth wave triangle pattern (see EWP, p. 48). If so, the next move
of consequence should be a sharp thrust to above .8000, which should roughly coincide with a gold rally.
 Tapping into the
Power of Impulse Waves
June 2, 2005
Steven Hochberg,
Co-editor, The Elliott Wave Financial Forecast

Elliott Wave International, Inc.

P.O. Box 1618
Gainesville GA 30503
(800) 336-1618 or (770) 536-0309
Fax (770) 536-2514
www.elliottwave.com