The chart still looks bullish to me, and poised to break the 1.33 swing high. Although there is a potential daily head and shoulders pattern coming up, I will be expecting it to fail with the near term target as the supply zone at 1.335. If this supply zone breaks, 1.36 will be the next supply zone.
Personally I do not trade the head and shoulder pattern because it just fails too often. You can find H&S patterns all over the place and you will likely come to the same conclusions. Trading the supply and demand areas is a better bet.
Looking at the price action, it is likely that on market open, the price will drift towards the 1.33 supply zone and go down towards the 1.32 demand before New York. Therefore, I might attempt to sell at 1.33 supply if it reaches there at London open and I will be looking at the 1.32 demand zone for a buy during New York or Tuesday.
XAUUSD
Silver has been in a down trend for the last few weeks. On Friday close, it has bounced of a demand zone speed bump at 31 and went 1/2 way into the supply zone at 32.3. I am expecting the hammering of silver to continue and I might consider a buy at the demand 31.1 or hold out for the demand at 30.5.
Current Pending Orders
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