Monday Started with a Continuation of Moves from Last Week

Monday Started with a Continuation of Moves from Last Week
Last week there was a bit of optimism on the charts.
Last week there was a bit of optimism on the charts. Indices were steadily climbing higher and American Dollar corrected its value a little bit. Emerging markets currencies gained and the same happened with gold. The last one may not be a sign of risk on mode on the market but recently gold broke that pattern and is mostly influenced by the value of the USD and not the bull/ bear market sentiment.

Last week was mostly about the European Central Bank (ECB) rate decision and this one is all about the Federal Reserve (FED) although we still have some time for that (Wednesday), so we will focus on it a bit later.
Monday’s calendar is pretty empty. We may assume that with a lack of important data, traders will continue the movements dominance in the previous week and that’s actually a case in the early hours of the European session.

The EURUSD started the new week around the same levels as we saw in the second half of the week. The interest rate decision from Thursday introduced some short-term volatility but when the dust settled, we still didn’t get any dominant direction. The EURUSD remains locked in a rectangle between 1.012 and 1.026.

An instrument, which should get out attention this week should be gold, where the price absolutely met the key support at 1680 USD/oz. Meeting it is one thing but using it is another and gold used this area wisely. The price bounced creating a first weekly bullish candle since the beginning of June. This creates an interesting occasion in terms of the risk to reward ratio.

It looks like the coming week will be good for indices, especially the DAX, where we have a really nice technical situation. The price bounced off the 12450-point support, which is absolutely crucial in the long-term. In addition to this, we broke the mid-term down trendline, connecting lower highs since the middle of June. All that, allows us to think that the bullish correction will continue. 
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.