SP500 and Gold find local supports. EURUSD with a new pattern!
EURUSD starts this week on the back foot. USD is stronger again. Monday trading resulted with a bearish breakout from the flag pattern, and today, the price made lower high. Currently, on the chart, we do have a descending triangle pattern, which promotes a further drop.
SP500 is in a bearish correction mode but yesterday, index met a very important support and this decline may be over. Especially that the price bounced from that level creating a daily hammer candle and the V-shape reversal on the smaller timeframe. As long, as we stay above the combination of 2870 and the up trendline, the sentiment is positive.
Gold bounced from the lower line of the symmetric triangle pattern, which confirms this line as the closest support. After this, the next target should be the upper line of this pattern but buyers are weak here and the further drop is slightly more probable. Especially with the stronger dollar.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis