Brad Alexander
FX Large Limited
We are listening, so please keep them coming.
Here we have Gold with an upward bias and we always want to trade in the direction of the trend.
We have price action bouncing off the lower trend line and we have the Stochastic Oscillator turning up from Oversold.
We also have the “Three White Soldiers” candlestick pattern.
If you want even more confirmation, let’s take a look at other assets paired with the USD.
As we can see, we have USD weakness on many other pairs. Just like XAUUSD.
In the future, however, you may want to wait for a bigger reversal and keep an eye on this Double Top.
This might take a while and you will need to wait for a serious break of support below the neckline.
You may also want to wait for some other indicator like MACD to give you a bearish indication.
Whatever your strategy, please add it to your trading plan and don’t enter a trade until you have confirmation.
Getting back to USD pairs we see a nice uptrend on NZDUSD.
Price action has already bounced off the lower trend line and the Stochastic Oscillator has turned up from oversold but it may be rising into overbought territory.
Be aware of this key level of resistance at around 0.624 and be aware that MACD is starting to consolidate even with this bullish signal.
Also, on USDJPY we are in a downtrend and the fundamentals tell us that this might continue.
Price action has bounced off this upper trend line and the Stochastic Oscillator is still heading down.
If we add the Parabolic SAR, we see the beginning of a bearish indication.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
Recommended Content
Editors’ Picks
EUR/USD drops toward 1.0700 after US jobs report
EUR/USD came under renewed bearish pressure in the second half of the day on Friday and declined toward 1.0700. Stronger-than-expected Nonfarm Payrolls (NFP) data helps the US Dollar gather strength ahead of the weekend and forces the pair to stay on the back foot.
GBP/USD extends slide below 1.2450 amid a stronger USD
GBP/USD dropped further and hit fresh daily lows below 1.2450 amid a stronger US dollar. The Greenback remains firm following the release of the US May jobs report. Despite losing almost 100 pips on Friday, GBP/USD is still on track for a weekly gain.
Gold falls below $1,960 as US yields rebound after US jobs data
Gold price turned south and declined below $1,960 on Friday. After the data from the US revealed that Nonfarm Payrolls rose 339,000 in May, the benchmark 10-year US Treasury bond yield gained more than 2% and recovered toward 3.7%, weighing heavily on XAU/USD.
Cardano price coils up for a 15% rally as 6.61 million ADA net flow value comes in
Cardano price appears to be ready to finally break out from the consolidation after flipping above a crucial roadblock. The optimism comes as the ADA token recorded a massive spike in large transactions nearing 35,000 in 48 hours.
Week ahead – RBA and BoC to hold rates but might be tempted to hike
Policy decisions from the RBA and the Bank of Canada will be taking centre stage next week amid an otherwise light agenda. In the US, the ISM services PMI will be the only top-tier release and now that Congress has averted a default by suspending the debt ceiling.