Gold back inside indecision zone and important resistance

Gold price is challenging short-term important resistance. Medium-term trend remains bearish as long as price is below $1,300, but Gold in the short-term has formed a double bottom as we mentioned in previous posts and is challenging resistance.


Red rectangle - horizontal resistance area

Blue line - short-term trend line resistance

Gold price is back inside the resistance area of $1,280-90. Price has formed a double bottom and has so far bounced closer to the important resistance level of $1,300. Support remains at $1,266 and if broken we will see a move towards $1,250-60 or lower. Breaking above $1,300 will open the way for a move towards $1,350-60 and higher.

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Weekly fake break out for the Dollar index

The Dollar index managed to spread enthusiasm among Dollar bulls as last week we saw prices finally break out and above the December 2018 highs. This week however ended with an entire different sentiment.


Red line - weekly horizontal resistance

The Dollar index closed this week below the broken red horizontal resistance canceling the break out we witnessed last week. However not all is lost yet for Dollar bulls. Yes the weekly close is not good for the bullish trend, but price continues to make higher highs and higher lows. The Dollar index continues to trade around the 61.8% Fibonacci retracement of the entire decline. A rejection and bearish reversal from current levels will be confirmed with a break below 95.15. This would have longer-term bearish implications for the index. Until then bulls still hope that the bullish trend will be revived next week and price we recapture the red horizontal resistance trend line. A weekly close above 97.75 will open the way for a move towards 100.45.

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May 3, 2019 : EUR/USD Intraday technical analysis and trade recommendations.


Few weeks ago, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200.

This enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where significant bearish rejection was demonstrated on April 15.

Short-term outlook turned to become bearish towards 1.1280 (61.8% Fibonacci) then 1.1235 (78.6% Fibonacci).

For Intraday traders, the price zone around 1.1235 (78.6% Fibonacci) stood as a temporary demand area which paused the ongoing bearish momentum for a while before bearish breakdown could be executed on April 23.

Currently, the price zone around 1.1235-1.1250 has turned into supply-zone to be watched for bearish rejection.

Two days ago, a recent bullish head and shoulders pattern was being demonstrated around 1.1140 on the H4 chart.

That's why, conservative traders were suggested to wait for another bullish pullback towards 1.1230-1.1250 for a valid SELL entry.

Today, bearish persistence below 1.1175 was needed to ensure further bearish decline. However, the market has failed to sustain bearish pressure below 1.1175.

Hence, Further bullish advancement is expected to occur towards the depicted SELL zone around 1.1235 to generate sufficient bearish pressure for another bearish swing.

Trade recommendations :

Conservative traders should wait for another bullish pullback towards 1.1235 for a valid SELL entry.

S/L should be placed around 1.1275 to narrow the risk.

Target levels to be located around 1.1170 and 1.1130.

The material has been provided by InstaForex Company -