Welcome to this week’s Market Blast Technicals.
I’m Brad Alexander and on behalf of Valutrades, today we will look at USDCAD, USDJPY, the S&P500 (US500), and Gold (XAUUSD).
The desire to buy Gold is still with us but the strength of USD has driven price action down to this lower trend line.
The Stochastic Oscillator is bearish but showing oversold so we will watch geopolitical events (which always affect gold), the strength of USD, and an upturn of our indicators.
If you want to “Swing Trade” Gold you may use the “GoldAug” contract or, if you want to trade on the shorter term, XAUUSD has spreads as low as $0.05.
Price action finally broke the Rising Wedge on GBPUSD and, as we predicted, it was a bearish indication.
We have to look at the Monthly chart to see such high levels on USDJPY which just touched 133.
We haven’t seen this for over 20 years so, like many of us, you may want to trade the reversal.
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Just be careful!
Last week we looked at the S&P 500 which, like many markets, has broken this upper trend line.
However, price action is now forming this consolidation pattern which could be a Descending Triangle if we reach support at around 4075.
The Stochastic Oscillator is clearly bearish right now so we will keep an eye on this.
Yesterday we looked at USDCAD and we see the battle between Oil and USD.
Price action is fighting the downtrend and the Stochastic Oscillator is looking bullish but we will wait for it to fall from overbought before we sell USDCAD.
Source: Brad Alexander – FX Large Limited
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