EURUSD reaches short-term target of 1.0950.

EURUSD remains in a bearish trend. Price has reached our 1.0950 target after breaking below 1.11-1.1050. The bullish divergence signs in both daily and weekly charts remain but there is no reversal sign yet. Best strategy remains to lower stops if short and wait if you want to go long.

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Blue line - resistance trend line

Green rectangle - support

Red rectangle - target if support fails to hold

EURUSD has reached our red rectangle target area after breaking below the green rectangle support area. There are bullish divergence signs but trend remains bearish as long as price is below the blue trend line resistance. A bounce towards the green rectangle area is justified. A back test of that support area is expected this coming week. A rejection at 1.1050-1.1060 will open the way for a move below 1.09. If price breaks and holds above 1.1060 we should expect to see a test of the blue downward sloping trend line resistance.

The material has been provided by InstaForex Company - www.instaforex.com

Weekly analysis on Gold

Gold has reached very close to the 161.8% extension of the August 2018- February 2019 rise. This was our second target area and we observe that the weekly RSI has reached overbought levels that preceded big corrections in the past.

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Blue line - long-term resistance trend line (broken)

Red rectangles - RSI overbought tops

Gold price closed the week at $1,520 with a high at $1,555. Our 161.8% target was at $1,570. Gold could continue higher this week towards that level. However the RSI is at overbought levels that in the past have lead to corrections if not bear market. Bulls need to be very cautious. Key support is found in the short-term at $1,500-$1,490. Most probable pull back target area is at $1,400-$1,450. If the RSI breaks below 70 then top is in.

The material has been provided by InstaForex Company - www.instaforex.com