Welcome to the second Monday this week. Cool trends formed last week and I hope they will continue. Fast gold is high, but I expect this week to close the candle even higher, DAX40 I would like to see a correction but as everyone knows the indexes are still rising, the dollar pairs with the Swiss finally go up. We begin.
The chart shows a weak range of movement during the last European sessions, where little was happening halfway through the day, and when hopes for a move to more than 30 points were lost, the price was slowly going up before the end of the session. Right now what I would like to see is a breakthrough in the support and a 1: 1 correction also known as OverBalance. You can see that the previous corrections kept their ranges very well, so this time we will also aim at this level. If there is no reflection signal, of course, we are waiting.
The currency pair did not give a clear signal of a rebound. I am afraid that the trendline breakout is a “false breakout”. The place of resistance marked with a dashed line shows our signal, which unfortunately has not been confirmed. The price rebounded from the level shown, so we are still in a possible downward trend. Breaking local support may mean a further decline, but these signals will be so weak that I will let go of this pair until a clearer picture of the market appears.
The situation is rather visible. We remain in the downtrend, and the breakout of support that everyone can see will continue. A large part expects a correction, because after such moves everyone’s hands itch to go against the trend, but we wait until the signal appears, and so far it has not been. The European session will show us the direction.
Investors at the rally may try to lower the price, but I do not expect a stronger correction than to the level shown. Until then, let’s remember that we are in an upward trend. When the price drops to the marked place, I will enter on the first signal (if it appears)