EUR pairs: Gaps to the downside, Gold and Silver in descending triangles [Video]

In our last video, we spotted gold continuing its bear run at price action at the upper trend line.

True to form, price did, in fact, bounce off and continue lower, and gave us a double top as well.

In today’s Market Outlook, let’s take a look at Forex trading on the NASDAQ, S&P 500, the Dow Jones Industrial Average,  WTI, EURUSD, Silver, XAGUSD, and Gold, XAUUSD.

But are we seeing a descending triangle on gold?

If we move out to the daily chart, we can clearly see that triangle with support at around $4,100…a nice round number.

We see the next key level below at $4,000…an even rounder number, and a previous descending triangle which broke out to the upside.

Silver, as well, on the daily chart, is showing us the same pattern with resistance at $55.50.

As we have been saying for weeks, this has more to do with the strength of USD even though the expectations are that the Fed will hold interest rates steady this month.

At yesterday’s open, we saw EURUSD gap to the downside, but the gap was filled quite quickly…within 6 hours.

There is a saying in trading: “Gaps always get filled.”

Is this true?  Not always, so let’s take a look.

On EURJPY, the gap was filled in 5 hours.

On EURNZD, 7 hours, then the downtrend continued.

On EURCHF, 4 hours.

On EURGBP, 8 hours.

But on EURAUD, it did not get filled…why is that?

We can see from the 4-hour chart that the gap jumped over a key level of previous resistance and fell to a key level of support, so we will keep an eye on these levels.

And what can we say about the price of crude oil as we see the steady march higher with WTI reaching $100 per barrel?

The bottom line on price here, and with Brent Crude, is that good news from the Middle East will see prices fall, and more bad news will see prices rise.

Contrary to recent investor sentiment, we see the NASDAQ and S&P500 falling while the Dow Jones Industrial Average is rising.

Why is that?

This is clearly a market rotation away from AI and tech stocks, which fall in and out of favour every few weeks, and the upcoming US midterm elections.

Basically, if Republicans lose control of Congress, large tech companies will be under much more scrutiny, spooking investors.

That’s all for now.

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