USD is Back

The fact that we were having Easter holidays did not mean that the market was poised to be boring and of low volatility.
Tomasz Wiśniewski
Money, finance, business concept abstract background

Already Friday brought us interesting trading opportunities and Monday, with it’s sweet, technical movements, was not any worse. Fundamentally, we do have old/new attractions on the horizon, with the new tensions between Iran and US, which can have a huge impact on the relations with China (Oil) and EU (more friendly approach towards Persians). In this environment, USD is gaining strength and on many instruments we got a proper signal to buy the USD.

First is the EURUSD, where the price bounced from the 50% Fibonacci and broke the lower line of the flag, giving us a legitimate signal to go short. Most recently, we do have a small correction, which is a great chance for those who missed the initial drop.

Dollar Index has a sweet buy signal. The big picture is that we are in an ascending triangle pattern and this formation promotes a further upswing. What is more, in a short-term, the price just broke the upper line of the flag, with a good looking bullish candle. That action promotes further march up north. The first target is the upper line of the ascending triangle pattern.

Stronger USD negatively affects Gold. Here, the trading signal seems the best if we consider only the technical factors. Au broker the lower line of the symmetric triangle pattern and the neckline of the H&S. What is more, we already tested those areas as a resistance and the price created a shooting star candle on the daily chart. That’s truly a bearish paradise. Our view is negative.

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

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US