Finally a Correction on Gold

What goes up, has to eventually go down. That truth can be currently seen on Gold, where we do have a strong bearish correction. The downswing did not start in a random place. Sellers attack precisely on the upper line of the channel up formation. Current drop is aiming the lower line of this pattern along with the horizontal level around 1315 USD/oz. Price getting there is almost certain as the current bounce is really small and it seems that sellers currently have all what it takes to fully control the situation.

EURJPY is getting ready for a bigger upswing. The positive scenario here comes from the fact that the price broke out of the symmetric triangle pattern. What is more, we broke the horizontal resistance on the 125.45 and later, created a bullish flag (black lines). Flag is promoting a bullish breakout and further rise.

Last instrument is the Cable, where on H1 chart, the price is drawing a head and shoulders pattern. The neckline is around 1.302 and is currently an important local support. Price closing below that line will be a strong sell signal. On the other hand, as long as we stay above, the buy signal is ON and the further rise is more probable.

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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