As anticipated in yesterday’s analysis, EURUSD made a reversal, only the scale of the rise was slightly beyond our expectations. The pair climbed significantly higher and on the daily chart, managing to form a very strong bullish candlestick pattern, namely a bullish engulfing. The appearance of this formation here is not random. We’ve managed to go back above the two horizontal supports and inside the symmetric triangle pattern. This is actually a false breakout too and can be considered as a strong buy signal.
Our second instrument is AUDCAD, where we can see a very clean bearish setup. The pair is in a downtrend, which started with a Head and Shoulders pattern. After this, we had a rectangle, and now we have a pennant. This is a trend continuation pattern, so it should result in a further drop. Sentiment is negative as long as we stay below the yellow resistance.
Last up is gold, where we are still waiting for the price to break the 1,315 USD/oz resistance. That should give us a buy signal, which will be based on the activation of the inverse Head and Shoulders pattern bouncing from the crucial support at 1,307 USD/oz. There’s a pretty good chance that this will happen.