In this piece, we will pick Top Technical Charts presenting high-probability setups that we will most likely trade multiple times during the week:
USDCAD - FX
GBPUSD - FX
Gold - XAUUSD - Metals
Dow Jones & SP500 - Indices
USDCAD 4H Chart
Last week, we wrote that "the pattern is close to a key Fibonacci level at 1.3330, hence we will eye a short-term bottom near that mark. Confirmation will be a strong hold on the hourly timeframes above 1.3330. " (source)
For this coming week, we will look to buy on support for a retest of resistance area 1.3800 -1.3850. Ideal entry would be close to 1.3500 since risk is low compared to the reward. Failure to hold pullback above 1.3500 on the hourly might invalidate the short-term bullish bias and expose last week's low at 1.3300.
GBPUSD 4H Chart
The Cable completed the pullback we were anticipating, albeit a bit deeper. From last week's analysis: "We are expecting a pullback to the 1.2600-1.2500 now support area to understand whether buyers will come back in or not. Possible short scalp for a pullback then shifting into a swing long position for further upside."
The plan currently is to buy against Fib. retracement 1.2445 as long as lower-bound of channel keeps holding on the hourly timeframe and target a retest of 1.2645 resistance. Fundamentally speaking, the sterling has bigger issues compared to the USD, as such, it will be interesting to see reaction at 1.2645 or 1.2350 and observe which side will take charge.
XAUUSD 4H Chart
The FED's monetary policy statement and Powell's comments helped Gold break above 1700 and therefore, maintain ground above a key monthly level at 1722. As long as this monthly level is not taken out this week, we will still attack this market on the long side.
A strong move below 1722 will expose 1700 which will be last line of defense from buyers.
Dow Jones (US30) 4H Chart
Even though a pullback towards 26,650 was anticipated, DOW once again sea-sawed more than our projection. We have a buy position standing since Friday's close and looking to liquidate on a retest of the 26k-26,200 resistance zone.
If we get this scenario to play out then we might look for some short scalp on resistance if market confirms.
SPX 4H Chart
As with the Dow Jones, we are expecting SPX to retest zone around 3100 and from there sellers stand a good chance of bringing the price lower and challenging monthly support at 2950-2900.
The above is only a preliminary analysis on the market and, if need be, we always change according to price action and incoming market information. Most of the times, market swings around the levels mentioned above, however, a trader should always practice a flexible mind and adjust to changing trading environment.
Until the next time, trade well!