Weekly Price Action Setups & Key Levels | Mar 6 – 11
Gold – False Break But Still Bullish Medium Term (1hr chart)
As I’ve been focusing on the gold price action lately, I discussed on Thursday how I expected some profit taking to end the week. As you can see from the chart below, we did indeed get this making new highs, then pulling back into NFP.
With a better NFP print than expected, Gold initially dropped but found bids ahead of support and the role reversal level at 1248. The shiny metal then made new highs only to form a false break setup, likely from traders booking profits for the week.
As long as 1225 holds up on a daily closing basis, my medium term bias is bullish so will continue looking to trade longs.
I tweeted about my bullish bias on Gold vs. several crosses on Friday morning, including $XAUCNH and $XAUTHB where I traded and profited on (which was good since I needed to offset my losses on Kiwi & Euro shorts
USCDAD – Bearish ST While Below Major Support Zone (1hr chart)
After banging around a corrective structure for most of last week, the USDCAD broke lower and thus cleared through a major support zone between 1.3484 and 1.3400. My ST bias is bearish and MT as well as long as it remains below 1.35 on a daily closing basis.
NOTE: I talked about the USDCAD in depth in today’s Ichimoku Analysis sharing how Ichimoku Cloud trading can offer a unique perspective on these types of moves.
For now I’ll be looking to get short on pullbacks. Downside I’m looking for a potential move down to 1.30 and perhaps 1.29 both of which should off some solid support for long term bulls.
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