CAC40 still in the red YTD. The index has not closed end-of-week above 2016 opening level at 4563.75. A major resistance with very attractive risk-reward ratio.
The key consideration is that green zone I drew over there as well as the two question marks ?? right below. This green zone is a support.
Price action is a treasure trove about the trend of a currency pair and what the market feels about it i.e. market sentiment. USDJPY example.
Follow Gold price action as we look at its weekly performance, market sentiment. Also I propose 1 red line that may explain gold movement.
Price now > open price, market sentiment is bullish. Price now < open price, market sentiment bearish. Gold now bullish but Silver not.
By observing price action (following days) at the opening price of each month (black horizontal line) we can see evidence that price reacts to those levels. Being technical support resistance does not mean that those levels will not be penetrated.