EURUSD with an Impressive Counter Attack
As anticipated in our yesterday’s analysis, EURUSD made a reversal.
Only the scale of this rise was slightly beyond our expectations. EURUSD climb significantly higher and on a daily chart managed to create a very strong bullish candlestick pattern – bullish engulfing. A formation is not happening in a random place, we managed to go back above the two horizontal supports and inside the symmetric triangle pattern. This is actually a false breakout too and can be considered as a strong buy signal.
The second instrument is the AUDCAD, where we can see a very clean bearish setup. Price is in a downtrend, which started with the head and shoulders pattern. After this, we had a rectangle and now we have a pennant. This is a trend continuation pattern, so should result in a further drop. The sentiment is negative, as long as we stay below the yellow resistance.
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The last one is gold, where we are still waiting for the price to break the 1315 USD/oz resistance. That should give us a buy signal, which will be based on an activation of the inverse head and shoulders pattern bouncing from crucial support on the 1307 USD/oz. Chances for that are pretty good.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
