Gold price back tests cloud and trend line break out area

Gold price broke above the 4 hour Ichimoku cloud and the downward sloping trend line. It is imperative that bulls are strong at current levels and push price higher. A bounce off this support area around $1,700 would be a bullish sign.


Red lines - trading range

Black line -resistance trend line

Gold price remains inside the trading range. Price has broken above the black downward sloping trend line and above the 4hour Ichimoku cloud. These two signs are bullish. However price need to stay above the cloud and the trend line in order to confirm these bullish signals. This back test is normal and common to be seen after break out. A bounce off cloud support would increase the chances of the bullish scenario for a move to $1,740 and higher. Do not forget that price remains inside the trading range we have noted several days ago. As long as we stay inside the range, we are going nowhere.

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EURUSD technical analysis

On Friday we saw EURUSD bounce strongly out of the bearish short-term channel we noted in our last analysis on Thursday. Price has bounced and touched 2 of our bounce targets so far. Price made a high at 1.0875 where we find the 38% Fibonacci retracement level.


Red lines - bearish channel

Blue lines - Fibonacci retracement levels

EURUSD has bounced towards the 38% Fibonacci retracement but could not overcome this resistance level. If bulls manage to recapture 1.0870 we should then expect price to move towards the next two Fibonacci retracement levels at 1.0894 and 1.0922. The latter is the most probable target if price breaks again above the 38% level. Support is found at 1.0814 and next at 1.0767.

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