With month end closure around the corner, today the USD lost some ground again against the EUR, GBP and AUD… How will this month end?! The tension is increasing with the minute…….
Both the EURUSD and GBPUSD were fighting against major resistance levels at 1.30 and at 1.52 today, but the bears couldn’t remain in control, despite the many USD bulls in the market place… Let us see how the month candle closes tomorrow to get a better idea what direction and clues the higher time frames might give us (weekly and monthly chart).
The AUDUSD had a similar struggle with the major 0.97 resistance level, but this currency has not yet managed to break it.
- After the failed attempt to break the top, the AUD did make an attempt to the downside…
- But the Aussie bulls felt comfortable buying around the 0.9580 level and pushed the AUDUSD back towards the 0.97 level top.
- Maybe the bulls felt more convinced of the potential bullishness after reading my detailed article yesterday on the AUDUSD. Make sure to read that article for all the details.
- The currency has higher lows with a flat top and the chart pattern is suspiciously looking like a ascending wedge. Could the AUDUSD break the 0.97 level soon? Looks like it. But make sure to read the article as there are still many major resistance levels on the AUDUSD with probably lots of downside left (after a bigger correction has taken place).
Once again, with tomorrow being month end closure, make sure to be very careful when trading! Any begin or end in trading is always more difficult.. month start, month end, year start, year end, week start, week end….
After the month of May closes we will do a very detailed analysis of all the currencies on Monday and take a good look at the monthly candles to see what we can expect in June. So make sure to keep an eye out on that!
The USDJPY has continued its bearish day candle of Wednesday with another push down…
That happened after quite a substantial rally to the upside, but the current day candle is breaking through the rising wedge.
Be aware of the 100 support level, which could be the major hook back for more upside.
As most of you know, previous resistance becomes support… and price tends to hook back to those broken levels…. It is like a magnet. So expect the 100 to be a major level.
Gold has bounced off the 786 Fib and is showing bullish price action signals for a bigger upward correction.
Here are some of the reasons why I expected a bigger upside correction and still do. Read here the 1st article a while back where I spelled out that a move up was likely.
1) As you can see the article above, the XAUUSD made bullish daily engulfing candles…
2) Ever since then we had a mix of bullish and bearish candles, but that in fact is more sign of lack of downside power… if the down move had sufficient momentum, then it would have broken through the 786 support level at 1340. It didn’t.
3) After 6-7 days of sideways movement, the XAUUSD is no finally breaking above the 1410 top formed recently.
4) Lets see how today’s candle closes but if it has a bullish close with a close near the high, that could one of the confirmations of more upside to come.
5) The next resistance level is at 1485. Then at 1520-1530, which are major, major levels because that was the gigantic bottom which was broken. The likelihood of this becoming resistance now is quite large.
Alrighty, that wraps things up for today.
Make sure to be on the lookout for my article tomorrow as I will be explaining the 3rd part of the Million USD strategy, which will provide extra optimizers! Here is the link to the 2nd part by the way.
Thank you for your reading and article sharing, much appreciated!!!
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Be careful with trading tomorrow. Personally I will not be trading on the last day of the week and month… month end closure is not a day I like to trade on but if you do, I wish you Good Trading!
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