First up is EURUSD, where the price bounced from the 50% Fibonacci and broke the lower line of the flag, giving us a legitimate signal to go short. Most recently, we have a small correction, which is a great chance for those who missed the initial drop.
The US dollar index has a sweet buy signal. The big picture is that we are in an ascending triangle pattern and this formation promotes a further upswing. What’s more, in the short term, the price just broke the upper line of the flag with a good-looking bullish candle. That action promotes a further march up north. The first target is the upper line of the ascending triangle pattern.
A stronger USD negatively affects gold. Here, the trading signal seems best if we consider only the technical factors. Au broker the lower line of the symmetrical triangle pattern and the neckline of the H&S. What is more, we already tested those areas as a resistance and the price created a shooting star candlestick on the daily chart. That’s truly a bearish paradise. Our view is negative.