Happy Sunday Legendary Traders,
How did your weekend go?
Well, for me, I spent my better part of the weekend watching Game of Thrones from the beginning. I need to update myself before season 8 is officially released.
Other than that, I spent time looking at charts for the week ahead and also what we did in the market last week.
So, Let us share what I studied, apart from the GOT (lol)
1. EUR/JPY
Price on EUR/JPY retraced it’s steps back to a key resistance level (125.050).
After price spent almost 2 months climbing an ascending support trendline, the support finally failed to hold price on Friday.
That said, a new support level (124.270) was formed as we saw price pull back to a familiar resistance level it once broke as a support level.
My bias is that price may most likely return to support level (124.270). However, if there is a breakout at the present resistance level, price may rise above level 125.534.
2. AUD/JPY
A bullish pinbar was formed on the daily chart of the AUD/JPY.
There is a likelihood that the bulls will take price to the next possible resistance level (79.941).
Let’s not forget to put Monday into consideration.
Depending on how the daily candlestick of Monday closes, there are no guarantees that the present support level will not be broken and price won’t hit level 75.268 as it’s next support level.
3. GBP/USD
On the 4 hours chart, price on GBP/USD is resting on a key support level (1.29909)
After two major bearish breakouts (1.31955 & 1.30802), price hangs on the present support level.
When looking through the lenses of a daily time frame, you will observe that price is only trying to complete a journey to the next possible support level (1.28828) of an ascending channel.
It is also paramount to allow price give us a confirmation to sell or buy (If price decides to consolidate between price level 1.29909 & 1.30802) before pulling the trigger.
The LAST but not the LEAST setup is…
4. XAU/USD (GOLD)
Gold has just reached a key resistance level (1302.60)
We saw the bears grow weaker last week, after price hit a key support level (1280.94). We may be seeing a temporary pullback, or a reversal (if price breaks through the present resistance level).
Personally, I will be waiting to see how price reacts on Monday around the present resistance level. If the present bearish dojis confirm my bias, I may sell this pair and place my target profit at 1283.10.
If by any chance I see that the bulls are not willing to back down, then I will be waiting on the other side of the present resistance level to take a buy.
That said… Let’s see how the market obeys or defies our analysis,
I wish everyone a pipfull week ahead.
