Welcome to Monday’s next financial markets review. The overall situation on the charts does not change much from last week. Remember that the last week of this month is starting, so I’m sure we’ll have some pretty cool earnings opportunities.
The economic situation in Europe is slightly improving. Forecasts for the whole week also show a slight improvement, but with an emphasis on “small”. Unfortunately, the dollar seems to be in a better position, which may have an impact on further deepening of the decline in the currency pair in question. When we check the chart in the D1 interval, we can see that we have a chance for OverBalance. The level of the correction coincides with the support where you can search for a place to take a position.
The chart shows a continuing trend, and if you believe in the strength of the macroeconomic readings, the trend should continue. I assume a deepening of the current price level to the place marked in the picture, but until the level is not significantly exceeded, we remain in an upward trend. Entry as usual, after the signal, because we are not catching the lows.
After breaking the designated channel, the German index returned as expected. The beginning of the month was not too trending, but the second half was already firmly in the direction. At the moment, I am going to follow the short-term trend, but at the point marked with the cross, I will watch for a reversal signal. If I see an opportunity to go long it will be in the marked area as it will continue to move along the main trend, supported by the support and channel.
When it comes to analyzing gold, you can often plot the exact move in the short term. We are now going to play predicting the future and I will mark in the picture how I would see it. I created a channel line that held the price. The upper limit of the price allowed us to mark the line that we moved down, thanks to which the price level could be determined. I didn’t use the level myself because my entrance was closed to zero twice and I decided not to try again. However, I was expecting the scenario shown in the picture.