In today’s analysis, I am looking at three instruments- EURUSD, DAX, and Gold. I will start off with the EURUSD. Bear in mind that they are all representing the 4 Hour chart
EURUSD
The 4H EURUSD chart is showing a slight hesitance of EURUSD. It is locked between two levels and is looking for a solid level to step on and find direction. So far, price action is showing us a more bullish than the bearish picture on the chart. The key levels to watch are:
Support: 1.1750
Minor Support: 1.1780
Resistance: 1.1900
Depending on how price reacts to these levels we might see:
Scenario 1) Possible bearish rejection around the minor support area followed by a continuation of the uptrend.
Scenario 2) Possible bullish rejection forming above the major resistance area. If this is the case, we might experience a minor reversal.
DAX
Yesterday I spotted a bearish formation on the 4H chart timeframe. Today, we are already on the path lower, so I am considering possibly adding to my short position. The key levels of this instrument are:
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Resistance:12320
Support 1: 12250
Support 2: 12100
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The sell-off yesterday was initiated by a pin bar on the 4H chart. Today, I will be looking for another confirmation price action candlestick.
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Gold
The other instrument I am going to go through today is gold. The key levels are:
Support: 1256
Resistance: 1273
It seems like the price has settled down over the 1250 area and now is waiting for more buyers to join the party. Looks like the daily chart is adding to the bullishness. Yesterday printed a small daily rejection and if today closes as a bullish engulfing, it will confirm the bullish outlook. After 1273, we are getting closer to the 1300 handle. This is where I see the big test of bulls vs. bears to be.
In the meantime, have a great trading day and keep your charts open.
Guest post by www.colibritrader.com
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