Gold in descending triangle, buying the dip on NASDAQ, S&P, and Nikkei [Video]

Welcome to today’s Market Blast.

Today we will take a look at Forex Trading on Gold, XAUUSD, the NASDAQ, the S&P500, AUDUSD, USDJPY, USDCHF, and the USD Index.

Last Friday, the US Non-Farm Payrolls came out more than double the analysts’ expectations.

This drove USD and many other assets higher, as we can see on the USD Index.

If you are new to following economic news, the driver isn’t a good figure or a bad figure; it is based on how much the actual figure misses the forecast.

So, you will see many instruments with similar price action, like this hourly chart on USDCHF, with a big move, then an attempt at a retracement.

However, we see the trend on USD strength continuing, so watch the prevailing markets; bearish or bullish.

For example, we see USDJPY continuing the uptrend after the NFP retracement and the stochastic oscillator picking reversals along the way.

I encourage you to look at all USD pairs to see how the NFPs have affected price action and the opportunities.

For example, AUDUSD opened with a gap on Monday, the gap was filled, and price is consolidating in a slight uptrend.

The early morning chatter in the markets includes the rebounding of the Asian markets like the Nikkei, where we see price action bouncing off the lower trend line and an oversold stochastic oscillator.

Basically, investors bought the dip.

The question is, will this optimism carry over to the US indices?

We see the effect that the NFPs had on the NASDAQ.

Investors prefer to invest in companies when they are not worried about the Fed raising interest rates, and a fat employment number almost always does this.

But AI and tech enthusiasm has returned to the markets, and investors are buying the dip here too.

We are getting mixed technical signals with MACD showing us a bullish crossover.

The S&P500 was equally affected, and we see slightly more optimistic technical signals.

Also, something to watch out for: the SpaceX IPO will go ahead on 12 June, so we expect market volatility.

However, this company will not be included in the NASDAQ until early July and will not be included in the S&P500 for at least one year, if results are good.

We can see how the NFPs affected Gold as well, with the news driving price action down to this key level in this descending triangle.

If we move out to the 4-hour chart, we can see that trading the downtrend was the right option and that the stochastic oscillator did a great job picking the reversals, up and down.

However, after the NFP shock, we may want to wait for the dust to settle and let this consolidation work itself out.

Also, tomorrow we have the US CPI, which will give the Fed another clue as to inflation and the status of future interest rates, which will affect, again, the strength of USD.