EURUSD with an Impressive Counter Attack

Only the scale of this rise was slightly beyond our expectations. EURUSD climb significantly higher and on a daily chart managed to create a very strong bullish candlestick pattern – bullish engulfing. A formation is not happening in a random place, we managed to go back above the two horizontal supports and inside the symmetric triangle pattern. This is actually a false breakout too and can be considered as a strong buy signal.

The second instrument is the AUDCAD, where we can see a very clean bearish setup. Price is in a downtrend, which started with the head and shoulders pattern. After this, we had a rectangle and now we have a pennant. This is a trend continuation pattern, so should result in a further drop. The sentiment is negative, as long as we stay below the yellow resistance.

The last one is gold, where we are still waiting for the price to break the 1315 USD/oz resistance. That should give us a buy signal, which will be based on an activation of the inverse head and shoulders pattern bouncing from crucial support on the 1307 USD/oz. Chances for that are pretty good.

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