After yesterdays holiday and mainly inactive market, we are seeing some movement today. The markets remain in a very unpredictable state as momentum is exhausting itself and coming to a halt. These are certainly not ideal moments to be in the markets. With that said, we want to be able to have some idea of what might take place moving forward. So let's take a look at the markets leaders.
GOLD ~ the daily momentum shift demand zone is in control now so we have the daily moderate force up. the demand did not make a significant move up so this needs to be recognized as being of lower quality.
DOLLAR ~ on the daily chart of the dollar we have a supply zone being removed but when you take a look at other data feeds this supply doesn't exist and instead one higher does. This higher zone is actually being contacted right now. We must also remember that on the daily chart an ascending trend line structure is holding price up but one daily demand has already been removed so technically price is in consolidation and zones get taken out easily during these phases, without much meaning.
$EURUSD ~ weekly poorly formed supply is in control still, price dropped and a daily demand is holding up to the last few pips. One thing to remember as well is just like the dollar, the daily chart has had a supply zone removed so it is in consolidation with the descending trend line broken as well. Odds are the demand will hold but anything can happen right now because of the circumstances mentioned.
CONCLUSION ~ at the very moment it is too early to tell if the $eurusd will rally higher or drop. There exists a bias but many things can happen between now and then should the bias play out. Waiting patiently for now is the way to go. Watching for key weekly zones to be taken out!