For the third time in the last 10 days, the EUR/USD has sold off at the key resistance zone between 1.10 and just north of 1.11. We talked about selling last week in this zone with both plays working out for +100 pips and +200 pips respectively.
I’m staying bearish below these levels on a daily closing basis. Those not already short will want to get in closer to 1.10 or the FOMC spike highs near 1.1045. Only a daily close above 1.1165 will negate the bearish trend MT.
Gold – Corrective Pullback Into Role Reversal Level (4hr chart)
After an impressive $80 bull run sub-1150, Gold has bounced pretty impulsively before running into some solid profit taking and offers around 1220.
Since then, the pair has retraced consistently, but has formed a relatively corrective price action pullback into a role reversal level at 1192. There is some bids stepping in here with the 4hr pin bar and a few tailed bars at this level.
If the corrective pullback is telling the tale, then we should see another attack on 1220 here so a potentially good risk:reward setup buying off this level and targeting the recent highs. A daily close below this level however means an attack on 1175 and potentially a move towards sub-1150.
