DXY: next week should stabilize @ 89.51. --- If there is no break and close on a daily basis, then a strong recovery can be expected. There are 2 conditions for the bullish medium-term recovery: 1. Prices rising above 91.30 on a weekly basis 2. Prices rising above 93.22 on a monthly basis If this view holds true, EURUSD and gold will not do so well.
Variant 2, as a bearish alternative to my previous chart: --- In the event that the price breaks through 1.19 and remains below, then note the indicated years left and right in the monthly chart. History could repeat itself i.e. the downtrend that started in March '20 could continue through July '22 and reach 1.382% of the Fib Extension (1.1034). Mathematically,...
I expect another high for CADJPY this month. Next week 1.618% (90.711) of the fib extension of the yellow AB should be reached, but 1.618% of the whole of 2020 (91.372) would also be possible. There are currently 2 ways of counting: a) blue count indicates a final blue wave 5, which should reach 2% of the entire year 2020 in the last quarter = 95,516 b) The yellow...
If this setup works, we could keep an eye on a nice stretch for short at the end of June.
As long as there is no break and close above 130.6 (daily & weekly) we could see falling prices. Confirmation of this would be daily close at 129.87. In that case: TP1 = 129.36 TP2 = 128.65 In May upper target @ 131.94 would be a great opportunity for short with approx. 1000 points.
Since the low in March 2020, I've been seeing lots of ABC movements here. For this reason I come to the conclusion that a short opportunity in the first week of May can be offered.
I think gold will be bearish this week and next. Look for a long entry next week. As long as the Weekly stays below MA 20, it will be a while before we see prices above $ 1760 again. For this scenario it is important that April does not close below 1707.52, in which case we could expect: TP 1 = 1846 TP2 = 1898