Thursday and Friday brought us an escape to safe heaven assets. Stocks are going down and currencies like USD and CHF are gaining value. First up is DAX, which bounced from the major, long-term resistance – the neckline of the giant head and shoulders pattern. We were expecting that, hence why we warned our viewers in previous videos. So here we are, we have a bounce from the neckline, so the sell signal is confirmed.
Next up is gold, which is still locked between the 23.6% and 38.2% Fibonacci levels. Sentiment is positive, especially since the price created a flag pattern, and it's highly likely it'll end this with a further upswing. The target is on the 38.2% Fibo.
Lastly we have EURCHF, where we'll most likely finish this week on the weekly lows. The price broke the lower line of the pennant and is very close to breaking the lower line of the flag. Additionally, we are bouncing from an important horizontal resistance. When the price breaks the lower green line we'll have a proper sell signal.