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Last week’s strong closing candle is coming from a big area with long-term implications. The head-and-shoulders top I’ve been discussing for months had its neckline thoroughly tested after it broke in October. Retests are a common occurrence for these types of patterns before their full bearish potential is realized. In confluence with the neckline is the decisively falling 200-day MA, the underside of the 2011 trendline which was also ...
The Euro is back to testing resistance guiding it lower against he US Dollar since January 2018, a barrier reinforced by the top of a choppy channel in play over the past two months. Another rejection might open the door for the next leg in the single currency’s slow downward grind while a break higher has might set the stage for a significant medium-term trend reversal. more...
Gold registered a low at 1280 with price respecting slope on a close basis before recovering higher. The advance failed this week at former channel support, turned resistance, with the subsequent sell-off breaking back below the 1302 pivot zone. The decline is now testing the 61.8% retracement of the advance at 1292 and a break below this threshold would risk another test of slope support with broader bullish invalidation steady at 1275/76 where the yearly opening-range low converges on the 38.2% ...
The pattern the past few months in these times of extraordinarily low volatility has been for moves in the Euro, in both directions, to look like they want to build on momentum only to reverse. We are about to find out if this latest installment of weakness can last or will those who just sold be kicking themselves as another breakdown turns out to be false. If the pattern is to change then EURUSD can't burst higher in the coming days, ...
From a technical perspective, gold was likely due for a noticeable pullback judging by the red-hot relative strength index (RSI). The RSI has been increasingly sending an ‘overbought’ signal due to the 13 percent runup in the commodity since bottoming August of last year. As such, the selling in gold could be viewed as a healthy ‘reversion to the mean’ with prices consolidating back towards its moving average. Although, gold bulls were ...
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