Gold (XAU/USD) in falling wedge? [Video]
![Gold (XAU/USD) in falling wedge? [Video]](https://editorial.fxstreet.com/images/Markets/Currencies/Crosses/XAUUSD/gold-bar-32668024_XtraLarge.jpg)
The strong USD is still driving the price of Gold lower as we can see from this lower trend line and the bearish indications on the stochastic oscillator.
However, let’s keep an eye on this as we may have a falling wedge forming which is a reliable bullish pattern.
We can still see the results of the rising wedge that we spotted a couple of weeks ago.
We have to move out to the weekly chart before we see price action this low from 2 1/2 years ago.
Price has broken the 50% Fibonacci level, which was a key level of support several times, and is now falling to the 61.8% level.
Price action on WTI has again bounced off the lower trend line so we will wait for a pullback before going short again.
Price caps and fears of recession should keep the bear run intact.
Last week we spotted a bearish consolidation pattern on Natural Gas and it looks like we were right.
Obviously, we need to keep an eye on the fundamentals around Russian supply of Natural Gas but the Stochastic Oscillator is showing Overbought.
Last week, the Swiss National Bank did not raise Interest Rates which drove price action against the trend.
This was a great opportunity to take advantage of what we call the “Counter-Trend Price Action Trade”.
If you missed the trade, you may still have an opportunity to go short on CADCHF which is still in a downtrend but consolidating here.
CHF overall has been a strong currency and the declining price of Crude is putting downward pressure on CAD.
You may want to wait for confirmation by using your favourite indicators like the Stochastic Oscillator or perhaps wait for a bearish indication from the Parabolic SAR.
Author
Brad Alexander
FX Large Limited
Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.
