EUR and Gold climbing higher ahead of the NFP

Everybody like Fridays, especially Non Farm Payroll Fridays. Great feast for the traders, with increased volatility and significant trading signals. Ahead of the NFP, the USD is weaker and the stocks are heading higher.

Yesterday the Dollar Index made an attempt to break the mid-term down trendline and a horizontal resistance created by the neckline of the H&S formation. Contact with that area resulted with a false breakout and a strong reversal. With that, the sentiment stays negative.

Gold bounced sharply yesterday using the 1300 USD/oz and a correction equality pattern.

Correction equality pattern was also used on the EURUSD,which climbed higher using also a 61,8% Fibonacci and a neckline of the iH&S formation. Sentiment is positive.

Positive outlook on the EUR is also on the EURJPY where we do have an up trend with a small flag. This suggests us that after this small correction we should continue to climb higher. Especially after defending the 130.9 support.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis