The first one is the Gold, where we were mistaken, at least in the short-term. Our view so far was bullish and I thought that the price should use the 1307 USD/oz as a support. Unfortunately for the buyers, the price broke that support and is currently heading lower. My initial setup got canceled but that does not mean that the whole bullish sentiment is gone. The price is still above the mid-term up trendline (blue) and is currently in a flag pattern, which should result with a further upswing. 1297 USD/oz looks like good support here. On the other hand, above the orange area, we do have a head and shoulders formation, which is already up and running. This formation is small though so the potential drop coming from it should not be lethal.
The next one is Dollar Index, where the price is showing the beauty of the false breakout pattern. After that, we usually should have a strong movement in the opposite direction and this is actually what is happening here. What is more, yesterday DXY broke the upper line of the wedge, which can be considered as a confirmation of the buy signal.
The lastt one is the USDCHF, which broke the super important horizontal resistance on 1. After the breakout, that area was successfully used as a support. Thursday brings us the highest levels since the 16th of November. The buy signal is ON!
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
More From FXEMPIRE:
- Directionless Asia Waits On China, ECB Forecast Renews Growth Fear, Futures Point To Soft Open In US
- The Elliott Wave Principle and Trading Strategies – Webinar February 13
- Natural Gas Price Fundamental Daily Forecast – Today’s EIA Report Should Show Largest Draw of Season
- Strong Dollar And High Risk Averse Trading Activity Inspired Mixed Action in Precious Metals Market
- Sterling Lower Ahead of BoE Super Thursday, Dollar Rallies
- Oil Price Fundamental Daily Forecast – Rangebound Market Likely Until Trade Deal is Reached