As if Nothing Happened – Gold, S&P500 and DXY

Nothing happened, there is nothing to worry about. That is yesterdays message from the trading floors. The second half of the Tuesday brought us a strong correction and today this movement is continued on most of the instruments.

On the Gold that could have been expected. Here, this reversal should happen regardless of the circumstances. It is always good for the technical situation to test the recent crucial resistance as the closest support and that is the current scenario here. As long as we stay above the up trend line, the sentiment is still positive.

Bounce on the SP500 using the up trend line should not be a surprise to anybody. Using that support, the price performed an upswing which broke the upper line of the flag (which is a neckline in the same time).

Dollar index also reverses and is about to test the recent support as the closest resistance. 93 looks like a great place for a bearish reversal.

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