Gold ranging in Fibonacci levels, trading the Nasdaq, trading a CAD/JPY reversal? [Video]
|Gold is still consolidating with a slightly bearish bias on the Stochastic Oscillator but we see a strong level of support at the 23.6% Fibonacci level at $1748.
If we break this level, the next target below is the $1721 low from September.
Yesterday we promised to look at the key levels on CAD and, with its current strength, we have to use the Daily charts to find these levels.
For example, if we compare the strongest currency to the weakest currency, we have CADJPY approaching its May high of 91 yen and the Stochastic Oscillator displaying Overbought.
If you are eager to look for a big reversal, the 4-hour chart shows the Stochastic Oscillator already heading lower and the MACD signal line might break out of its histogram soon.
However, pay attention to the Fundamentals on both these currencies before you trade against the trend.
We have a similar story on NZDCAD as we are approaching a key level of support at $0.86 from June of this year and a couple of times last year.
The situation with AUDCAD is much simpler with price action just bouncing off this upper trend line and the Stochastic Oscillator turning from overbought in this downtrend.
We have said many times that our “Buy-the-Dip” strategy on the S&P 500 is broken but we see a possibility with the NASDAQ as price action has reached a lower trend line.
We will wait, however, until we get an entry signal from our Stochastic Oscillator, MACD, or both.
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