EURUSD Daily Analysis
EURUSD (1.1164): EURUSD closed Friday’s session at the support level of 1.1155, failing to maintain the initial gains which saw the euro test session highs of 1.1251. On the 1-hour chart time frame, we can see that the declines from 1.1251 highs saw prices retest the inverse head and shoulders pattern neckline resistance for support. A reversal from this level could signal near-term upside, but the rally can be capped near 1.1200 resistance level. The Stochastics has formed a lower low against the higher low in price indicating the hidden bullish divergence which keeps the bias to the upside. Watch for a retest back to 1.1200 and further upside could see prices test 1.1270 – 1.1280 resistance. To the downside, price failure below 1.1150 could signal further downside.
USDJPY Daily Analysis
USDJPY (103.71): USDJPY closed near 104.00 resistance level on Friday and price action remains largely mixed after Friday’s strong bullish outside bar. Further upside can be expected on a close above 104.00 for a test of resistance at 106.00. To the downside, support at 102.00 could be tested ahead of further upside. The On the 4-hour chart, however, the bearish divergence points to a stronger correction down to 101.00 – 100.80 level, which could be tested on a breakdown of prices below 102.00.
GBPUSD Daily Analysis
GBPUSD (1.3317): GBPUSD cleared 1.3200 resistance level last week, and price action is likely to remain supported above this level, albeit a retest to establish support at 1.3200 remains pending. On the 4-hour chart, we notice the bearish divergence as the Stochastics fails to confirm the highs in price. Support at 1.3200 – 1.3170 is therefore very likely to be tested, ahead of further upside to 1.3400. A breakdown below 1.3200 – 1.3170 could signal near term declines to 1.3067.
Gold Daily Analysis
XAUUSD (1324.20): Gold prices closed bullish on Friday with prices seen testing 1327.50 – 1331.30 resistance level. With prices being rejected strongly at this level we could expect a near-term pullback in gold prices based on the 4-hour hidden bearish divergence. Watch for a higher low likely to be formed near 1314 – 1312 level. If a higher low is formed here, gold prices could be looking to retest the resistance at 1331.30 – 1327.50 followed by a retest back to 1350.00.
Share
