Trading Short NASDAQ (US100) and DAX (DE40). Gold (XAUUSD) Breaking Higher? GBPUSD in Ascending Triangle.
Hey Valutraders! Is the NASDAQ recovering, or is this just temporary?
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I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at Gold (XAUUSD), AUDNZD, GBPUSD, the DAX (DE40), and the NASDAQ (US100).
Financial news outlets are talking about a recovery in the stock markets but beware!
From the technical perspective, this could be just a temporary rally with price action reaching this upper trend line and the stochastic oscillator displaying very overbought and turning down.
If we move out to the daily chart we see lots of bearish signals including the Parabolic SAR, MACD, and convergence from the Stochastic Oscillator.
If we look at other indices like the DAX we see a similar story.
The USD is showing signs of weakening as we pointed out yesterday.
In particular, GBPUSD is in this ascending triangle just below $1.28 but the stochastic oscillator is quite overbought so be careful if you are thinking of going long.
If and when price action breaks this level of resistance, we have the 38.2% Fibonacci level above.
If we move out to the daily chart we can see that the MACD signal line has left the histogram which is often a bullish indication.
And, the Stochastic Oscillator is showing some bullish convergence as well.
But, if you want to trade any USD pairs or US indices, be aware of Jerome Powell’s speech at the Jackson Hole Economic Symposium this Friday.
This could be a game changer for the US economy.
We promised to take a look at AUDNZD and we see this symmetrical pennant which can very often give us range trading opportunities if we combine price action with our favourite technical indicators.
If we move out to the daily chart we see pretty much the same thing.
Price action on gold seems to be breaking the falling wedge that we have been watching for weeks.
The MACD signal line has broken out of the histogram and is turning bullish.
Again, watch out for Jerome Powell on Friday.
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