50-51 region has been a major demand zone in 2019, being tested three times.
4th test is on the course. This trial is a bit different than the others technically, as we have almost full weekly candle with a small wick.
Selling pressure is quite heavy backed by the coronavirus concerns.
I expect a test of ascending support line (2) around 48-49 level this week.
ECB officials continue to express that EUR price level and market expectations shall not be their priority. These comments mitigate the dovish stance of FED on rate cuts. EURUSD price may ease in short term.
Technically, EMA200 worked as a rejection point once again, followed by a the break of ascending support line around 1.13. A typical SHS formation is...
Lagarde is nominated for ECB Presidency.
Compared to Draghi, I expect much more dovish stance from her.
New and more intense QE policy might follow, which would lead Euro to revisit 2000 levels.
Black days for EUR bulls to come shortly...
Gold price is struggling to break 1400 level. EMA21 on 4H scale holding the price.
Stochastic indicators show early signs of reversal. Price may test 1330-1340 region once again.
If this setup fails, below 1400 might extend down to 1385.
RSI is in overbought region at level 76. The weekly candle is floating over upper Bollinger Band.
Floating gap is $20, which is more than an average daily candle.
A strong signal for a pullback !!!
2014 March high is tested, but RSI and (also other stochastic indicators) show signs of overbought situation.
A pullback and re-testing of 2014 maximum would lead to a new rising trend. At this moment, (following $120 rise without stop) uptrend seems exhausted.
Yesterday FED was dovish but not too much, with reservations for the next meeting. Need to watch...
