Trading short AUD/USD, gold (XAU/USD) breaks key Fibonacci level [Video]
|Welcome to this week’s Market Blast Technicals.
I’m Brad Alexander and on behalf of Valutrades, today we will look at Silver (XAGUSD), Gold (XAUUSD), GBPAUD, EURAUD, and AUDUSD.
You will have heard me talking about the Counter-Trend trade many times and we have a selling opportunity with AUDUSD.
This is a combination of fundamental and technical analysis.
Basically, the Reserve Bank of Australia raised their interest rate slightly higher than analysts’ expectations and price action on AUDUSD went higher.
Depending on your favourite indicators we can now look for a reversal with the stronger USD against the upper trend line and with an overbought stochastic oscillator, which isn’t quite there yet.
We have the opposite situations on EURAUD and GBPAUD.
If you watched yesterday’s video, you will know that we are watching USD, EUR and GBP as the respective central banks will likely be raising interest rates soon, creating the reversal.
Also, you may have seen our April summary on the Valutrades website where I pointed out that Gold has broken a key Fibonacci level of support, driven by the strength of USD.
The daily chart shows a break of the 50% level and the next level below is the 61.8% level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.