Gold (XAU/USD) reversal short-lived? Trading long NZD/USD, Trading short USD/JPY [Video]
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Here we have Gold with an upward bias and we always want to trade in the direction of the trend.
We have price action bouncing off the lower trend line and we have the Stochastic Oscillator turning up from Oversold.
We also have the “Three White Soldiers” candlestick pattern.
If you want even more confirmation, let’s take a look at other assets paired with the USD.
As we can see, we have USD weakness on many other pairs. Just like XAUUSD.
In the future, however, you may want to wait for a bigger reversal and keep an eye on this Double Top.
This might take a while and you will need to wait for a serious break of support below the neckline.
You may also want to wait for some other indicator like MACD to give you a bearish indication.
Whatever your strategy, please add it to your trading plan and don’t enter a trade until you have confirmation.
Getting back to USD pairs we see a nice uptrend on NZDUSD.
Price action has already bounced off the lower trend line and the Stochastic Oscillator has turned up from oversold but it may be rising into overbought territory.
Be aware of this key level of resistance at around 0.624 and be aware that MACD is starting to consolidate even with this bullish signal.
Also, on USDJPY we are in a downtrend and the fundamentals tell us that this might continue.
Price action has bounced off this upper trend line and the Stochastic Oscillator is still heading down.
If we add the Parabolic SAR, we see the beginning of a bearish indication.
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