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 turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.