Correction on FTSE and Gold. USDJPY with a very nice Head and Shoulders patter

Gold breaks the mid-term up trendline but the downswing stops on the 1324 USD/oz. There is a chance for a bigger reversal but first, the price needs to break this support. If that will happen, next target will be around the 1300 USD/oz.

USDJPY created a trend reversal pattern – head and shoulder formation on the hourly chart. Interestingly, the neckline was at the same time the long-term horizontal resistance on the 110.9. As long as the price is above this area, the sentiment is positive.

FTSE continues the decline started on Tuesday. The potential target for this is the 7600 support, so an upper line of the symmetric triangle pattern. Bullish formation there will be a very strong buy signal.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire

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