Welcome to this week’s Market Blast Technicals.
I’m Brad Alexander and on behalf of Valutrades let’s take a look at Renminbi, USDCHN, USDCAD, and Gold (XAUUSD).
You may think that we are spending a lot of time on the precious metal, Gold, but we are for good reason.
If you followed our analysis, both on fundamentals and technicals, you would have done well shorting XAUUSD but now we are heading into serious support at $1,680.
We see a little pullback on the 4-hour chart, heading back to the upper trend line, even after price filled the gap that we spotted yesterday, and on the Daily chart, we aren’t finished yet!
Price action is at the 61.8% level of support on our post-COVID Fibonacci and is, in fact, at the same price pre-COVID from one year ago.
Both the Parabolic SAR and MACD still say “short” and the Stochastic Oscillator is stalling in “oversold”.
A break through support could result in price action reaching several key levels below.
If you went short on USDCAD, or Loonie, last week based on our analysis, you would have done well.
We are still seeing lower highs in the long-term downtrend, and our technical indicators are looking short or stalling, despite the recent strength of the USD, because, as we discussed yesterday the Canadian Dollar is impacted by the price of crude.
Looking at all the Canadian Dollar pairs, the strength is obvious.
We had been monitoring USDCNH for a year now with this long-term downtrend, and it looks like USD strength and PBoC Monetary and Fiscal Policy has caused a pullback but let’s keep an eye on our technical indicators to see if we can get back into the short position.
In closing, if you would like us to take a look at any instruments on the Valutrades lineup, please drop a note on the YouTube page or on the chat line on the Valutrades website.
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That’s all for now. Happy trading with Valutrades and we will see you later in the week with our trading tips video.
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