Trading short AUD/USD, gold (XAU/USD) breaks key Fibonacci level [Video]

Brad Alexander FX Large Limited

Welcome to this week’s Market Blast Technicals.

I’m Brad Alexander and on behalf of Valutrades, today we will look at Silver (XAGUSD), Gold (XAUUSD), GBPAUD, EURAUD, and AUDUSD.

You will have heard me talking about the Counter-Trend trade many times and we have a selling opportunity with AUDUSD.

This is a combination of fundamental and technical analysis.

Basically, the Reserve Bank of Australia raised their interest rate slightly higher than analysts’ expectations and price action on AUDUSD went higher.

Depending on your favourite indicators we can now look for a reversal with the stronger USD against the upper trend line and with an overbought stochastic oscillator, which isn’t quite there yet.

We have the opposite situations on EURAUD and GBPAUD.

If you watched yesterday’s video, you will know that we are watching USD, EUR and GBP as the respective central banks will likely be raising interest rates soon, creating the reversal.

Also, you may have seen our April summary on the Valutrades website where I pointed out that Gold has broken a key Fibonacci level of support, driven by the strength of USD.

The daily chart shows a break of the 50% level and the next level below is the 61.8% level.

Author

Brad Alexander

FX Large Limited

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

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.