Gold Climbs Higher Even With The Gains On The USD and Stocks

Despite traders slowly falling in the winter dream, we still managed to find three great trading setups.

First one is Gold, which is quite surprisingly going up today. Surprisingly because the USD is stronger and stocks are higher. So two, usually negative factors for the bullion are present on the market. This rise is even more weird as it breaks crucial mid-term resistance – on the 1480 USD/oz. The price is currently breaking strong horizontal and dynamic resistance (upper line of the wedge) and it can have huge consequences for the long-term situation on gold. Once the price will close a day above those two – legitimate buy signal will be triggered.

EURUSD failed spectacularly, when trying to breach the 1.12 resistance. That sharp reversal canceled the bullish breakout of the inverse head and shoulders pattern. Price is also coming back below the mid-term down trendline (red). All of those signs are negative and are promoting a further decline.

Last instrument is SP500. Not much to add here as you can clearly see what the sentiment here is. Just a quickly reminder though. Santa Rally still can possibly happen here, adding few points for the buyers. Those rises tend to happen after, not before Christmas. So if You think that we are already witnessing that right now, well, then market can have some additional gifts for you, prepared for after Christmas.

This article is written by Tomasz Wisniewski, Director of Research and Education at Axiory