Now that we've tested the weekly trend line for the 3rd time, we'll be hopefully looking to go long.
I had previously gone short on this trade on a previous idea, but I now predict the EUR will move upwards.
Gold prices surged as risk appetite withered across global financial markets. That pushed bond yields down alongside stocks, boosting the appeal of non-interest-bearing alternatives including the Gold itself. Crude oil also took a beating.
If we look at the higher timeframe, we're still on course for a continuation of the uptrend despite being stuck in a...
AUDUSD & GOLD have a positive correlation, because Australia is the 3rd biggest Gold producer, so I believe as the price of Gold increases, so will AUD and from technical stand point we're looking for a a re-test of daily trend resistance and continuation of the up trend over the course of the week.
I assume, we'd be looking to go long on USDCHF now after the C corrective wave. Furthermore, this could be an opportunity for price to create an inverted head and shoulders and potentially push the market past the daily resistance trend line.
That also tells me, the price of Gold may weaken temporarily as both pairs tend to move in the opposite direction to each other.
-Expanding Wedge formed on weekly chart
-double bottom formed on support trend line on the daily chart; showing momentum to the downside has decreased.
-4H chart; 3 tests of support identify a consolidation. Also shows signs of bullish divergence.
Looking to go long..
I assume GBPUSD can either start to rise due to testing the daily support trend line as well as forming a doji on the 1H chart. If a bullish Harami or bullish engulfing bar forms on the 4H we'll be looking to go long.
Due to the sellers momentum it could continue to break through and reach my monthly support at 1.23800.