Welcome to mid-week trading my dudes!
If you’re looking for trends, then you’ll want to check out spot gold’s (XAU/USD) short-term and USD/CHF’s long-term downtrends.
Let me know which setup looks more legit to you!
Spot Gold (XAU/USD): 1-hour
Spot Gold (XAU/USD) 1-Hour Chart
Whil bitcoin gets a lot of attention for being “digital gold”, what about gold itself?
Spot gold prices have been registering lower highs and lower lows since the commodity hit resistance at $1,800 two weeks ago.
XAU/USD saw new monthly lows at $1,730 before gold bulls were able to push it back up to the $1,750 psychological area.Can gold extend its short-term gains? As you can see, $1,750 is not far from the 1-hour chart’s 100 SMA as well as a trend line resistance that hasn’t been broken since the downtrend started.
Shorting at current levels could make for a good trade if you place your stops just above the 100 SMA and target August lows or even new monthly lows.
Think XAU/USD is due for a reversal? Look out for a clear break above the trend line and 100 SMA resistance zone before targeting previous areas of interest like $1,760 or $1,775.
USD/CHF: Daily
USD/CHF Daily Forex Chart
Who’s g for trading dojis? USD/CHF just closed a Doji around the .9650 psychological handle!
What makes the candlestick more interesting is that it popped up near the 50% Fibonacci retracement of July’s downswing and the daily chart’s 100 SMA. It’s not too far from a descending channel resistance either.You can start scaling in at current levels if you’re confident that USD will continue to lose pips against CHF.
Of course, you can also wait for a bit of bearish momentum or for Stochastic to drop from its overbought levels if you’d rather wait for more confirmation.
Think USD/CHF has room before it sees sustained selling pressure?
Watch the next candlesticks to see if USD bulls can push the pair to .9700 or the actual channel resistance before they let the bears take over.
