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Gold touches the Ceilling

Tomasz Wiśniewski

To be honest with you, if the market is going down because of Argentina, it means that something is wrong with it. I mean that sentiment is very fragile and if such an irrelevant thing can hurt traders, the big – significant event, will kill them.

Gold is having a great time recently but we just reached a crucial resistance. This is a combination of a horizontal resistance and the dynamic one. Price getting there does not mean a reversal but definitely is a good place for at least a bearish correction. To go short, you will need much more than that, you will need an actual drop in the price first. As for now, buyers are winning here on every single timeframe.

Other important commodity – Brent Oil is going the opposite direction – down. The price broke the lower line of the symmetric triangle and the horizontal support on the 59.6 USD/bbl. Since the 7th of August, we do have a bearish correction but yes, this is just a correction. The price should not rise above the blue area and the it seems that we are currently waiting for another leg down.

Now, NZDUSD, where the price is coming back to the movement created by the interest rate cut, so a downswing. For few days, traders were correcting the initial drop but the down trendline got defended, showing the determination from the bearish side. As long as we stay below the red line and actually make lower lows and highs – the sentiment remains negative.

This article was originally posted on FX Empire

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