Gold is doing everything to defend the 1307 USD/oz support. They are doing pretty good and it is all happening in the times of the great strength of the American Dollar, so basically against a very important correlation. The latest technical formation here is the inverse head and shoulders pattern. The price closing above the mid-term horizontal resistance on the 1315 USD/oz and the neckline (purple), will be a strong signal to go long.
Next instrument is the EURUSD, where we can see this strength of the USD mentioned above. 6 bearish days in a row! Monday, was especially important here as the price broke the lower line of the symmetric triangle pattern. That triggers the mid-term sell signal. In the short-term, we can have a small bullish correction but in overall, it does not look good for the buyers.
The last instrument is the USDJPY, which is in the flag or a channel up formation if you will. Most recently, we had a beautiful ascending triangle pattern, which gave us a proper buy signal. Situation here is opposite to this one on the EURUSD. Here, we can see a chance for the short-term drop but the long-term sentiment remains positive with the target on the upper line of the channel up formation.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
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