Bitcoin technical worries due to bearish divergence signs

Bitcoin is trading very close to an 8 month high. Price has reversed its trend back in March and since then it is making higher highs and higher lows. Trend remains bullish but we now observe some warning signs by the Daily RSI.


Red lines - bearish divergence

Short-term resistance is at recent highs at 9070$ while support is found at 7400$. The Daily RSI as shown above is showing some bearish divergence signs. This is a warning and not a reversal signal. If price breaks below 7400$ we then have confirmation of the trend reversal and price should at least test the 38% Fibonacci retracement level at 6800$. If the entire leg up from 3130$ is complete at 9070$, we could even see a deeper pull back towards the 61.8% Fibonacci retracement. However it is too early to talk about this scenario. There are still hopes from bulls that a new higher high could be made. The 8030-7850$ area is also important short-term support. Breaking below it will increase the chances of breaking below 7400$. As long as price is above this level we could see new higher highs above 9070$.

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EURUSD fears of a false breakout

EURUSD was expected to pull back towards 1.1250-1.1230 area for a back test of the break out. The wedge break out now seems like a fake one unless we see a sharp reversal to the upside starting on Monday.


Red lines - wedge pattern

Green rectangle - support area

EURUSD has broken back inside the wedge pattern and below my green support area. Price has reached the 61.8% Fibonacci retracement of the rise from 1.1107 to 1.1347. This is the last stand for bulls. The 61.8% Fibonacci level if it holds, should provide the basis for the next leg higher that should push price towards 1.17. Breaking below this level and staying below 1.1240-1.1260 will increase the chances of moving lower below 1.12 and will put the 1.11 low in danger. Bulls need to step in now and support price. Otherwise bears will take control of the trend once again.

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Gold ends the week with a bearish reversal signal

Gold price made new higher highs this week above $1,350, but at the last day of the week bulls received a bearish surprise by the market. A bearish reversal candlestick pattern in the daily chart implies that Gold has topped.


Blue line - major resistance trend line

Green line - major support trend line

Gold price has reached the much anticipated $1,350-60 resistance area we have been calling for since breaking above $1,300. Friday's daily candlestick is a shooting star pattern. This is a bearish reversal pattern that implies that an important top is in and we should see Gold price pull back. Short-term support is found at $1,320. Breaking it will confirm the reversal and open the way for a move towards $1,300 if not lower. Gold price has also shown bearish divergence signs in the RSI as well. We have turned bearish Gold as the downside potential is bigger than continuing much higher.

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