Forex trading short on Gold and Silver – AUD/CHF in double top [Video]

Brad Alexander FX Large Limited

These bumps in USD pairs are why we get you to watch the US Federal Reserve Press Conferences.

We can find some great opportunities.

As expected the US Fed did not raise Interest Rates yesterday.

However, during the press conference 30 minutes later, Jerome Powell made it clear that the next rate change would not be an increase.

This quickly made USD weaker and gave us some easy opportunities.

For example, we caught a bounce off support with the stochastic oscillator in oversold territory.

Watch for a reversal.

Another opportunity may be coming up if we see a reversal on USDCHF.

Watch this lower trend line and your favourite technical indicators as, we can from the daily chart, USDCHF has been in a bull run all year.

The same USD weakness caused the same dip in XAUUSD but on Gold, we may already have a reversal to the downside.

Price action has bounced off this upper trend line and the stochastic oscillator is oversold.

I would wait for a cross of the %D and %K lines before going short.

Price action on silver, however, looks like it has made up its mind already and is heading down.

But, watch out for the US Non-Farm Payrolls tomorrow.

Intervention by the BoJ combined with USD weakness caused violent whipsaws on all JPY pairs.

To be honest, no one really knows where JPY will go from here until the BoJ takes more action.

Last time we pointed out a short opportunity off resistance on AUDCHF and look what happened.

We exited the trade on the cross of the oversold stochastic oscillator and now price action is forming a double top.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.