Daily analytical report (10/07/18)

Alpari Market Review
Alpari Market Review

The correction on gold was not the deepest on record. The price managed to use the weekly hammer for an upswing but it was not spectacular. Yesterday’s candlestick formed a shooting star and prices came back below the 1260 USD/oz support and broke the lower line of the wedge. These are all bearish signs.

NZDUSD made a 170-pip bullish correction, which was initiated by the inverse head and shoulders formation. It managed to reach the 23.6% resistance and it seems that it will stop here. A breakout of the green area would be a great sell signal, strengthened by the double top formation. The lower line of the correction has already been broken.

NZDCHF is also giving us some bearish hints. A bit premature I would say as the ultimate resistance is a bit higher – on the 2 Fibos and correction equality pattern. A sell signal will be triggered once the price breaks the lower black line.

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