Indices Continue the Upswing. USD Is Going Down

Stocks surge and that comes as no surprise to us as we had previously mentioned on our US Election webinars leading up to the Elections. Lets see how the situation looks like on three instruments from different types of assets.

First lets take a look at DAX, which is having a sixth bullish day in a row. The one from today is especially important as the price is trying to break the neckline of the head and shoulders formation. That would technically cancel this formation and would bring us a positive sentiment again. Buy signal on USD will be triggered, once the price will close a day above 12400 points.

We had index, so now lets move to commodities, where we do have a very interesting situation on Gold. The price is breaking a major down trendline, which is connecting lower lows since the middle of August. Price closing a day above that line will be a major buy signal for the XAU.

One of the reasons why Gold is climbing higher is the fact that the USD is weaker and that brings us to the Forex market. I would like to show you a situation on the AUDUSD, where the price is breaking the upper line of the wedge pattern, which in theory is a strong price action buy signal. Sentiment on Aussie is definitely positive.

For a look at all of today’s economic events, check out our economic calendar.