Let’s start with the previous outlook:
“(…) There is also a fresh bearish development worth watching: today’s decline pushed price below the lower boundary of the recent 710–734 orange consolidation. We don’t have the daily close yet, so keep an eye on where today’s session finishes but if the breakdown holds, it increases the odds of another leg lower and at least a test of the lower boundary of the green rising channel in the coming days.(…)”
From today’s perspective, that scenario played out as expected. The bears extended the decline and tested the downside target we discussed.
The latest price action also pushed yesterday’s close below that important support line.
That said, the bulls still have one meaningful support area left: the green bullish gap at 674-692. Therefore, in our opinion, as long as that gap remains open, buyers still have a solid base from which they could attempt a rebound.
Price has already moved back inside the channel, but the real confirmation will come from the daily close.
So, what would the bulls need to do next? Their next job would be to attack last week’s small bearish gap and the broken lower boundary of the orange consolidation at 710.
Daily Takeaway: We will watch 674-692. As long as the bullish gap remains open, buyers still have a base for a rebound. A confirmed daily close back inside the channel would improve the setup, with last week’s bearish gap and 710 becoming the next upside objectives.
Quick Cheat Sheet
Dollar (DX.F): 100.93 level remains the key focus heading into the daily close. A close below it would strengthen the correction scenario and put the broken upper boundary of the black rising channel back in play. A break above the June and July highs would invalidate the bearish setup.
Platinum (PL.F): Here, the focus is on the 1736-1744 bearish gap. As long as it remains open, the bearish scenario stays active, with the 1700 barrier under pressure and the lower boundary of the green rising channel still in play.
Palladium (PA.F): Watch the 78.6% Fibo support area and the open bearish gap at 1218-1223. As long as that gap remains open and there are no clear buy signals, another downswing toward the lower boundary of the red declining channel remains possible.
Wheat (ZW.F): We are monitoring here the bullish gap at 674-692. As long as it remains open, buyers still have a solid base for a rebound. A confirmed daily close back inside the green rising channel would strengthen the bullish case, with last week’s bearish gap and 710 becoming the next upside objectives.
This is the analysis from last week. If you want more, please visit https://www.goldenmeadow.eu/.
Anna