Price is coming towards a very strong supply zone. This is mainly the two resistance line converging at the same time. I consider that this is unlikely to be broken out of such that the highest probability is that the price will decline. Red circle is the area I will aim to build a short position with a plan to hold for some time.
We have an ascending wedge on the monthly chart for the AU - an ascending (rising) wedge in a higher downtrend is bearish. On top of that, the coming price range between the two dotted horizontal black lines is the most likely area to cause a churning of price from this recent move up. Will keep an eye on this one but should play out in the coming weeks.
I see some strong resistance coming up, perfect place to take a high probability short. Will monitor this one and am looking for daily price to breach upper Bollinger band by as much as possible. Here is a closer view with the trade plan removed for more visibility. https://www.tradingview.com/x/uB40SmI4/
Taking a looking at DXY, have price coming down to support. Bearish case is that the most recent move up has sputtered out and had less momentum. The downside potential here is very big if price breaks down from the megaphone pattern. However, looking on a daily, price is well outside lower Bollinger band at the same time that price will arrive on support of ...
Four bullish reasons confluencing at the same time! Bullish Reasons • price around 200 sma • lower bollinger band 4h (for UJ pair, price appears to rarely stay too far lower 4H bband) • lower daily channel • support on channel resistance\ Look at the last 4HR that burst above the upper bollinger band around 3 am the previous night. Notice how price reversed there?