Canada Markets open in 4 hrs 28 mins

Gold feels the Dollar pressure

Tomasz Wiśniewski

Gold keeps going down despite quite a big amount of risk around the globe (Trade Wars, Iran, Brexit). The main reason for that seems the stronger USD. Buyers are doing all they can to protect the major up trendline. They even managed to create two hammers on a daily chart. Normally, that would be a great buy signal but the problem is that the price is still going lower. Sellers look like they do not care about the long tail of yesterday’s candle.

We mentioned that the reason for the gold’s weakness is the USD and you can perfectly see that on the EURUSD chart. Last week, EURUSD managed to break the mid-term horizontal and dynamic supports. Yesterday, traders tested those areas as the closest resistance. The test was positive for the sellers and the price dropped straight away. As long, as we stay below those areas, the sell signal is ON.

The last instrument today is Crude. Oil managed to defend the long-term up trendline but is still in the flag formation, which after April’s tops, is a bearish trend continuation pattern. There is a simple way to trade this formation. Breakout of its lower line gives us a sell signal and the breakout of its upper line opens us a way to go long.

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

This article was originally posted on FX Empire