There are times when pivotal round number prove to be more important in setting trader sentiment than any specific chart point.
One of those pivotal levels is XAUUSD 4000, with a bounce Back above it following a pause above 4060 3960 and 3942 supports has cooled the downside risk but not negated it.
USDCAD building momentum to the downside following
While trade is below 1.4150, potential targets are 1.4000 and 1.3950.
USDCHF on the verge of testing its near one year high (.8170). If broken, next key level is .8476.
Key weekly (buy on dips support ) .7910
Higher low would need to be followed by a break of $78.83 (on this CFD chart) to indicate a low is in and break current momentum.
Line up your chart to see a similar \pattern as levels likely differ from this CFD chart
Turning bearish after Friday’s break of a 12-day pattern pivoting 1.42.
For momentum to build to the downside, 1.414, the 12-day range bottom needs to become resistance. Some caution as USDCAD has been unable to distance from it.
Consolidating below Friday’s 7583 high and dependent on 7500-05 holding as support to keep a bid and momentum pointed up.
Intra-day low so far 7520
Consolidating after failing to break 29853 (on this CFD chart), needed for momentum to build further for a run back to 30K.
This leaves it dependent on 29334 holding to keep the downside in check and prevent a shift in risk back to 29K and 28678 low.
What stands out on this chart is a bounce from a double bottom just above 161.25 support.
On the other side, for momentum to buil;d to the upside, 161.80 needs tyo hold as support followed by a break of 162.25.
On the defensive while below 4100 but to build further momentum to the downside, 4022 would need to be firmly broken (low so far 4044).
On the other side, 4120-38 would need to be regained to restore a bid and shift the focus back to 4200.
