Welcome to another Monday morning. As every week, I start with a general market overview. Remember that today is a holiday in the USA (Martin Luther King Day).
Last week was very successful, 95% correct. Today we are starting with XBR Crude Oil. You can see that the December analysis has proven successful and we are currently in the correction phase. The overall chance of declines is high, the possible range from the largest correction in motion is marked with a green rectangle that coincides with a strong support. An additional argument is the emerging RGR which, as we know, may herald a reversal of the trend that we have here without appeal. Everything marked in the image.
NZDCAD We see that the pair bounced from the designated resistance zone and broke the channel lines, thanks to which a positive impulse was created to continue the downward movement. Currently, we can expect to reach the designated support zone.
During the Asian session, gold rebounded sharply. Investors will probably pull out the rate to choose short positions. At the moment, I can still see the graph, the downward trend is still in the game, possible entry near the resistance zone.
However, if gold surprised us today and the resistance turns out to be too weak, a possible breakthrough of the resistance along with the local trend line may give an impulse for increases and stronger breakout.
The DAX creates a very interesting picture of the chart, and there will definitely be some good trading opportunities this week.
In the longer term, I assume a further decline and reaching the designated support which coincides with the largest recent correction in the upward move. I have presented it in the H4 chart, I will want to play this scenario both ways, but I will try to enter a short position on a correction, also assuming an Over Balance. So I presented more wishful thinking in the H1 chart which shows that when I correct the resistance I will be looking to enter a short position. Of course, I repeat: “I don’t catch lows or highs! I am waiting for the price reaction at a certain level and only then I try to make a transaction.
The British Pound paired with the US Dollar. I don’t have a clear picture of this currency pair. The support is in line with fibo 61.8, but I am not very convinced of this level. I don’t know if I will play him. If I see a clear signal and the currency retests to the designated level, I will enter the trade if I do not force myself. The situation may look like the picture below, but I wonder if the level will not be broken.