Yahoo Finance USD is Back
Already Friday brought us interesting trading opportunities and Monday, with it’s sweet, technical movements, was not any worse. Fundamentally, we do have old/new attractions on the horizon, with the new tensions between Iran and US, which can have a huge impact on the relations with China (Oil) and EU (more friendly approach towards Persians). In this environment, USD is gaining strength and on many instruments we got a proper signal to buy the USD.
First is the EURUSD, where the price bounced from the 50% Fibonacci and broke the lower line of the flag, giving us a legitimate signal to go short. Most recently, we do have a small correction, which is a great chance for those who missed the initial drop.
Dollar Index has a sweet buy signal. The big picture is that we are in an ascending triangle pattern and this formation promotes a further upswing. What is more, in a short-term, the price just broke the upper line of the flag, with a good looking bullish candle. That action promotes further march up north. The first target is the upper line of the ascending triangle pattern.
Stronger USD negatively affects Gold. Here, the trading signal seems the best if we consider only the technical factors. Au broker the lower line of the symmetric triangle pattern and the neckline of the H&S. What is more, we already tested those areas as a resistance and the price created a shooting star candle on the daily chart. That’s truly a bearish paradise. Our view is negative.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire
