The end of May and beginning of June on the markets were super interesting. Well, at least for me, a heavy price action user. Movements were very technical and new mid-term trends were established. Today, we are presenting you a cross market analysis, where we will check the situation on a commodity, currency pair, and index.
First the commodity – gold. This precious metal just made new long-term highs after beating the highs from February. The rise was largely expected. Gold bounced from the 38.2% Fibonacci and broke the upper line of the wedge. That was a clear signal to go long. Now, buyers have to make sure to keep the pressure rising as the risk of a double top formation is quite significant.
EURUSD managed to create a double bottom formation. This pattern is already active as the price broke the horizontal resistance and the long-term downwards trend line. Sellers do not have many arguments to go against that.
Last up is DAX, which ignored the bearish breakout from the symmetrical triangle and the breakout of the horizontal support and the upwards trend line. Cancelling such a strong sell signal required a lot of strength, so we can assume that buyers are very determined. At the end of last week, the price managed to break the upper line of the flag, which creates a legitimate occasion to go long.