Gold is doing everything it can to defend the 1,307 USD/oz support. It’s doing quite well, and this is happening at a time when the US dollar is particularly strong, so it’s working against a very important correlation. The latest technical formation here is the inverse Head and Shoulders pattern. If the price closes above the mid-term horizontal resistance at 1,315 USD/oz and the neckline (purple), it will be a strong signal to go long.
Our next instrument is the EURUSD pair, where the aforementioned strength of USD is apparent. We’ve now had 6 bearish days in a row! Monday was especially important here as the price broke the lower line of the symmetrical triangle pattern. This has triggered a mid-term sell signal. We could see a small bullish correction in the short term, but overall, the situation doesn’t look good for the bulls.
The last instrument is USDJPY, which is in a flag or an upwards channel formation if you will. Most recently, we had a beautiful ascending triangle pattern, which gave us a proper buy signal. The situation here is the opposite to that of the EURUSD pair. There’s a chance here of a short-term drop, but the long-term sentiment remains positive with the target on the upper boundary of the upwards channel formation.
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