What goes up, must come down. We’re currently seeing the truth of this on gold, which is experiencing a strong bearish correction. The downswing did not start in a random place. Sellers launched their attack precisely at the upper boundary of the upwards channel formation. The current drop is aiming at the lower line of this pattern along with the horizontal level around 1,315 USD/oz. The price is almost certain to get there as the current bounce is really small and it seems that sellers have what it takes to gain full control of the situation.
EURJPY is getting ready for a bigger upswing. The positive scenario here comes from the fact that the price has broken out of the symmetrical triangle pattern. What’s more, we broke the horizontal resistance at 125.45 and then formed a bullish flag (black lines). The flag is promoting a bullish breakout and a further rise.
Last up is the Cable, where pair is forming a head and shoulders pattern on the H1 chart. The neckline is around 1.302 and is currently an important local support. Closing the day below that line would be a strong sell signal. On the other hand, if we stay above it, the buy signal will be ON and a further rise is quite likely.