Gold Shines, EURUSD Reverses and Bitcoin Drops

Gold starts this week on the front foot. Today, the precious metal is making new yearly highs and is currently fighting on a very important horizontal resistance around the 1307 USD/oz.

This area is crucial for the Gold since early 2015. Once buyers will manage to break this resistance, the way towards 1357 will be opened. We said that a few times before – history likes to repeat itself and last few years on Gold always started with an upswing.

Next instrument is the Bitcoin, where since the 10^th of January, the price was locked inside of the sideways trend. This trend was shaped like a rectangle (yellow) and our outlook on this was bearish – we were expecting the price to go further south. With this breakout, the way towards the 2900 USD is opened and this is my mid-term target for this crypto.

Last one is the EURUSD, where the last week’s ECB gave us a false breakout pattern (yellow). That was a false breakout below the mid-term up trendline and actually a false breakout from the flag formation. The result of this is a massive upswing, which looks really promising. My view on the main pair in the next few days is positive.

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