Gold Consolidating. Buying the Russell 2000? WTI in Falling Wedge.

Hey Valutraders!  Have you seen the consolidation on Gold?

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I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at the Russell 2000, the NASDAQ, EURCAD, USDCHF, EURUSD, USDCAD, and Gold (XAUUSD).

Firstly, apologies for this video being one day late.

Thanks to our old friend, COVID, we are a bit behind schedule.

We see a symmetrical pennant forming on Gold and some mixed signals as to whether it is a bearish…or a bullish pattern.

Well, you may not think it is a bearish pattern if you consider GBPUSD and EURUSD.

In both cases, price action has bounced off the lower trend line and is moving higher, with the Stochastic Oscillator moving higher with it.

Where the USD is the base currency, as with USDCHF, we see the opposite with price action bouncing off the upper trend line and the %D and %K lines crossing on the overbought Stochastic Oscillator.

You may recall from Monday’s video that we found CHF to be the strongest currency, but watch out for this level of support at around 0.886.

To see the next level below, from November 2020, we have to move out to the weekly chart.

Last week we spotted this opportunity on EURCAD and we hope you were paying attention because look what happened!

Again, we have to look at the weekly chart to see the next key levels above.

So?  Why is the CAD so weak?

The price of crude oil has been falling lately and the Bank of Canada may be ready to pivot on Interest Rates.

However, watch out for this level of support on WTI and this falling wedge which may indicate a reversal for crude oil.

Monday, we promised to look at “Buying the Dip” on the NASDAQ and, if you did, you made the correct call.

However, another US Index, the Russell 2000 did not do so well.

We will watch this as investors would like to see all the US Indices going in the same direction.

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That’s all for now.  Happy trading with Valutrades and we will see you next time.

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