DE30
Let’s start today’s analysis with the German stock index DAX (DE30). Looking at the H4 interval, the index has been trading in a downward trend recently. However the market bulls are trying to draw a potential inverse head and shoulders formation. The 12,625 pts area, where the potential right arm of the aforementioned formation lies, acts as the key support for now. Should sellers manage to negate this level, the downward move may deepen. In such a scenario, the 12,430 pts area is the next support to watch. On the other hand if the SHS formation finally emerges on the chart, the upward correction may be launched. In such a scenario, one should pay attention to the 100 - period moving average, which may act as a major resistance.
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DE30 H4 interval. Source: xStation5
EURUSD
Next, let’s take a look at the major currency pair. Looking at the EURUSD chart from a technical point of view, the pair has been trading in a strong downward trend recently. The pair hit the parity level twice: onTuesday and during today’s session. However the round 1,0000 level remains a key support in a short-time perspective. Should sellers manage to push the price below, the downward move may accelerate. On the other hand, if buyers manage to defend this leve, the upward correction may start. The nearest resistance to watch lies at 1.0105, where the upper limit of local 1:1 structure is located.
EURUSD H4 interval. Source: xStation5
GOLD
Last, but not least, let’s take a look at the gold market. Looking at the technical situation, the price of this commodity has been trading in a strong downward trend recently, similar to the EURUSD. Analyzing the H4 interval, the price broke below the downward channel, which confirms that the market bears are in control. Should the current sentiment prevail, further decline towards the $1,700 level is possible. On the other hand, should upward corrections start, the nearest short-term resistance is located at $1,731 and is marked with the upper limit of local 1:1 structure.. The next resistance also coincides with 1:1 structure and lies at $1,760 level.
GOLD H4 interval. Source: xStation5
