Three setups with a Bullish correction – Gold, Oil and NZDCADThat was a soft start of the last trading week in May. European election results were largely discounted earlier and the low volatility on Monday was mostly contributed to the markets being closed in US and UK.
FX is pretty quiet today too but we have few setups that you may find interesting.
First one is Gold, which most recently found and confirmed the most important horizontal support – 1270 USD/oz. As long as we stay above this line, the sentiment seems positive and we are still playing the correction scenario, not the reversal one. The real buy signal will be triggered, when the price will break two black dynamic resistances.
Oil – the second most popular commodity among FX traders is in a slightly worse situation than Gold. Here, we also have a price bouncing from a support but the thing is that the bearish momentum looks pretty strong here. Last week was catastrophic for Crude and it seems that this is not the end of bullish troubles.
Now something more exotic but very technical – NZDCAD. The sell signal from march was a proper one. We had a bearish engulfing pattern together with a false breakout. The price dropped creating a legitimate downtrend. Most recently, we do have a bullish correction, which is aiming for the long-term horizontal resistance. Chances that we will get there are pretty high, especially that in the same time, this is a 38,2% Fibonacci. Sentiment is still negative.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis