Brad Alexander
FX Large Limited
US Treasury Bond yields have increased which always puts pressure on the price of Gold.
From the technical side, the ADX is showing us a weakening uptrend.
And, we see price action forming a rising wedge which is often a bearish signal.
If we move out to the Daily chart, we see strong resistance at $1830 which is also near the 38.2% Fibonacci level.
We also see an Overbought signal on the Stochastic oscillator so we may be looking at a reversal here.
Yesterday we promised to look at AUD where we saw strength on every pair.
Today’s volatility from Australia’s economic events seems to have finished and, for example on EURAUD, we can wait for a bounce off the upper trend line and wait for a bearish signal on the Stochastic Oscillator.
The ADX is displaying a strong downtrend as well.
On the other side AUDCHF is in a strong uptrend and we will look to see what happens at the lower trend line.
But, be aware that the RBA has decided to extend their bond buying until February so, if price action on any AUD pairs breaks the trend line, we may be looking at a reversal as many analysts see AUD weakness.
In fact, we may be seeing a Double Top forming on AUDCHF so we need to keep an eye on this.
If you are thinking about trading NZD with the same strategy, we note that price action has broken the trend lines on every pair.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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