EUR/USD 4H chart EUR/USD surged after Powell’s speech on Friday…
EUR/USD: main trend still bullish
2019-11-11 • Updated
The main trend is still bullish, but there's a "V-Top" pattern, so the price is testing the nearest support at 1.2359 - 1.2346. Meanwhile, if a pullback from the 34 Moving Average happens little later on, there'll be a moment for another upward price movement.
The Moving Averages have acted as support, so the price is consolidating. Nevertheless, the market is likely going to test the next support at 1.2346, which could be a starting point for an upward price movement in the direction of the nearest resistance at 1.2384 - 1.2415.
A comparative examination of the strength of the US-Dollar often gives tangible insight into the direction of Gold (XAUUSD). The chart above indicates the expectation of a bullish price reaction from the demand zone
The US Dollar has been remarkably sluggish for the past few weeks despite being within a distinct Demand zone. My expectation of a springing rebound off the demand zone has not exactly played out yet, however, the zone remains unbroken.
For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances