Gold (XAUUSD) Reversal? Trading Short USD Index. GBPUSD Fighting the Double Top.
Hey Valutraders! Are we looking at a reversal on Gold?
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I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at AUDCAD, USDCAD, Gold (XAUUSD), the FTSE 100 (UK100), and the USD Index.
The USD Index has recovered a bit but are we looking at a reversal and continued USD weakness?
Price action is at this upper trend line and The Stochastic Oscillator has turned from overbought and is heading lower.
You may want to confirm this with another indicator like the Parabolic SAR.
It, for example, is still bullish but it is getting very close to the candles.
Yesterday we thought we were watching the formation of a Double Top on GBPUSD but buyers had other ideas.
We are now watching for a Symmetrical Pennant as the pair consolidates and the Stochastic Oscillator moves into overbought territory.
The FTSE 100 is continuing its bull run but watch out as we may be seeing the formation of a Rising Wedge which is a bearish pattern.
Gold has been heading lower for almost a week now and the signs of a reversal include this head and shoulders pattern.
We see a slight pullback today but the Stochastic Oscillator is looking bearish and we will keep an eye on this potential overbought signal.
Yesterday, we said that CAD was the weakest currency thanks to the falling price of crude oil.
Technically we see Rising Wedges on both USDCAD and GBPCAD, and a Falling Wedge on AUDCAD.
These are contradictory signals for CAD but we will keep an eye on these great trading opportunities.
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