Welcome to another new trading week and month. Last week was very exciting as the contract rollover and month end were very volatile. This week, I also expect large price movements due to the corrections themselves, but also the continuation of the current trends.
The situation on the British pound market in tandem with the US dollar is not yet fully known. You can see the price range in which the currency pair moves, on this basis I have designated the channel in which I will try to enter the transaction. Currently, from the M5 interval, you can see a consolidation from Friday with higher peaks, but this does not prejudge some further growth. I expect what is in the picture, and in these places I will wait for trading signals.
The German index of forty companies on Friday performed very technically and in line with our expectations. Today I rather assume a further increase in line with Friday’s proper move, but in the event that the support shown in the image is broken, I will switch to short position. The false breakout during the English session I do not take into account, because it often happens that a level is broken only to activate hedging orders and then the price returns to its main direction.
Daily R3 15680
Daily R2 15480
Daily R1 15365
Daily PP 15170
Daily S1 15050
Daily S2 14850
Daily S3 14730
I am starting to like gold more and more. Currently, I do not know whether there will be a breakout from the designated channel, but I assume that it will. With such delicate exits from the formation, a correction should be taken because the lines are conventional, and the market is not a pharmacy, and it is not all accurate to the dollar. Correct breakout can be brought down with a correction to the channel line and only then go up strongly. As marked in the picture.
Do you remember last week’s analyzes? The world’s largest cryptocurrency is moving as expected. The first place marked is the concentration by investors of everything that the other party to the transaction wanted to sell. Thanks to the concentration of bitcoin, there was no breakout and no sales signal. The second place was the breaking of local resistance on a large volume, which indicated a lot of pressure on the price increase. Remember that the market was rolling forward contracts at the end of last month, which always translates into increased movements in the financial markets. In the meantime, the alternative scenarios I showed did not happen, so we could safely hold the purchased currencies until the first signals appeared, which fortunately did not occur.