Sellers fail to follow through with the bearish engulfing month at the end of September. Friday closed above a critical resistance level 1.180, which acted as a support during the last consolidation. EURUSD did not retest 1.150 which is the top of the multiyear wedge that it broke free from in July.
As long as the euro stays above 1.150 and as long as the bearish engulfing candle is intact, I will still expect a pullback into 1.150. One can also take this to be a ranging market between 1.1960 and 1.1700. You can see the first break on the 24/09/2020, key resistance comes in around 1.1960 and key support 1.1700.
EURUSD daily time frame
The bulls recovered and pushed price key resistance 1.2980, after the breakdown which followed the rising wedge breakout that we discussed here.
The move above 1.2980 is bullish in my opinion and in line with the current short-term tread.
As long as buyers remain above 1.2980, 1.325 the recent high 1.350 will be exposed. A close below 1.2980 will put the pound under pressure.
NB: The monthly time frame remains choppy hence we will disregard the month engulfing from September.
GBPUSD daily time frame
Since breaking out from a rising wedge two weeks ago, it continues in a sideways movement.
Last two weeks I mentioned potential inverse head and shoulder on the weekly time frame if we get a sell-off. However, the pair’s inability to move below 0.650 support put the bulls in control. Friday closed above 0.660 resistance, we should keep in mind that NZDUSD broke out of the multiyear wedge that we discussed here, the top of that wedge is still very intact around 0.640.
If 0.660 holds as support 0.6788, followed by 0.69419, a break of the key support 0.650 might put the bears in control. Towards the measured objective of the rising wedge at 0.620
NZDUSD daily time frame
Gold consolidated through August to October in a falling wedge after an impressive rally. This consolidation shows further that gold is in a bull trend for the long term.
Friday closed above 1.910 which is a confluence of resistance (Trend line and horizontal resistance)
The close above 1.910 confirms a breakout and exposes 1.970 on the way up further resistance include 2.015 and 2.075.
Alternatively, if Gold close back below 1.910 that will expose 1.850. we should keep in mind that Gold is technically and fundamentally in a bull run and we should buy on dips or on breakups such as we have here.
XAUUSD daily time frame