Is Gold Like USDRUB?

Tomasz Wiśniewski
Updated: May 7, 2019, 08:07 UTC

Story of the day on Tuesday is definitely the RBA not cutting the cash rate in Australia. They put that decision on hold, despite the consensus being the rate cut. That helped the AUD a lot and now, the currency is climbing much higher.

Gold like USDRUB?

Usually, when AUD jumps, we have a similar movement on the NZD. This time is a bit different. NZD is not following this path. Actually, on NZDCAD we do see a very good, long-term sell signal.

NZDCAD is one of my favorite pairs in the group of trading occasions for weeks or even months. Here, we are going down driven by the bearish engulfing on the weekly chart along with the double top formation and the false breakout above the down trendline. About the double top formation…most recently, we broke the neckline of this pattern and tested that as the closest resistance. That takes away all the arguments from the bulls and opens us a way towards the lows from October. That gives us an opportunity for 550 pips trade. Sweet, isn’t it?

Next one is Gold, which is using this risk-off mode on the market that we see right now. The price is making a double bottom formation at the end of a wedge pattern. That can be a good start for an upswing. The buy signal will be triggered when the price will close above the upper red line.

A very similar setup can be found on the USDRUB. Actually here, you have an example, what can or should happen to gold in the future. USDRUB already broke the upper line of the wedge, using the double bottom formation. The buy signal is ON and we should see a further rise.

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

About the Author

During his career, Tomasz has held over 400 webinars, live seminars and lectures across Poland. He is also an academic lecturer at Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for his clients.

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