3 Bullish Setups on Thursday. CADJPY, WTI Oil and Gold
Today just one currency pair and not even a major one, CADJPY. Here, we do have a beautiful uptrend initiated by the inverse head and shoulders pattern from the end of March. Most recently, the price broke the 38,2% Fibonacci and then, used that as a support to create another bullish bounce. That was expected by us in the daily analytical report from yesterday. As long as we stay above the orange area, sentiment remains positive.
Next one is the WTI, which also behaved in an expected manner. The price of the Oil was in the ascending triangle pattern and yesterday we broke the upper line of this formation (horizontal resistance). We are still in a very healthy uptrend.
Another commodity in this report is Gold, where we also broke an important resistance (blue line). The thing is, that on the XAUUSD, buyers could not hold the price above that level. This creates a chance for a false breakout pattern, which can be very negative for the buyers. Sentiment remains positive but does not see a clear buy signal here yet.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis