Let’s turn out attention to Gold as the technical set-up fora long here has more in support of a move with relatively high probability...certainly compared to many currencies at the moment!
Last week closed with the formation of an inverse head and shoulders on the 240 minute time frame, as Gold continued its acknowledgement of the 1200 level. This makes Gold look like a far better play than the previous week. We now have two consecutive weeks represented by a bullish pin bar reversal on the weekly chart, with the additional RSI bullish reversal divergence.
We also have this bullish reversal divergence on the daily time frame.
Traditionally, gold is extremely bullish at this time of year as we can deduce from how it has performed over the past 20 years.
Recommended Content
Editors’ Picks
AUD/USD stays defensive below 0.6500 ahead of Fed
AUD/USD is on the back foot below 0.6500, consolidating the previous decline early Wednesday. China's holiday-led thin conditions and pre-Fed policy decision caution trading leave Aussie traders on the edge.
USD/JPY holds higher ground near 158.00, Fed in focus
USD/JPY holds the rebound near 158.00 in Asian trading on Wednesday. The US Dollar remains on the bid amid a risk-off market environment, underpinning the major. The interest rate differential between Japan and the US is likely to maintain a bullish pressure on the pair ahead of the Fed decision.
Gold pullbacks on rising US yields, buoyant US Dollar as inflation heats up
Gold prices drop below the $2,300 threshold on Tuesday as data from the United States show that employment costs are rising, thus putting upward pressure on inflation. XAU/USD trades at $2,296 amid rising US Treasury bond yields and a stronger US Dollar.
Bitcoin price dips into $60K range as spot traders flock to Coinbase Lightning Network
Bitcoin price slid lower on Tuesday during the opening hours of the New York session, dipping its toes into a crucial chart area. It comes as markets continue to digest the performance of Hong exchange-traded funds after their first day of issuance.
Federal Reserve meeting preview: The stock market expects the worst
US stocks are a sea of red on Tuesday as a mixture of fundamental data and jitters ahead of the Fed meeting knock risk sentiment. The economic backdrop to this meeting is not ideal for stock market bulls.