Welcome to this week’s Market Blast Technicals.
I’m Brad Alexander and on behalf of Valutrades, today we will look at NZDUSD, AUDCHF, EURAUD, and Gold (XAUUSD).
US Treasury Bond yields have increased which always puts pressure on the price of Gold.
From the technical side, the ADX is showing us a weakening uptrend.
And, we see price action forming a rising wedge which is often a bearish signal.
If we move out to the Daily chart, we see strong resistance at $1830 which is also near the 38.2% Fibonacci level.
We also see an Overbought signal on the Stochastic oscillator so we may be looking at a reversal here.
Yesterday we promised to look at AUD where we saw strength on every pair.
Today’s volatility from Australia’s economic events seems to have finished and, for example on EURAUD, we can wait for a bounce off the upper trend line and wait for a bearish signal on the Stochastic Oscillator.
The ADX is displaying a strong downtrend as well.
On the other side, AUDCHF is in a strong uptrend and we will look to see what happens at the lower trend line.
But, be aware that the RBA has decided to extend their bond-buying until February so, if price action on any AUD pairs breaks the trend line, we may be looking at a reversal as many analysts see AUD weakness.
In fact, we may be seeing a Double Top forming on AUDCHF so we need to keep an eye on this.
If you are thinking about trading NZD with the same strategy, we note that price action has broken the trend lines on every pair.
That’s all for now. Happy trading with Valutrades and we will see you next week.
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Disclaimer:
The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.
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