Are gold bulls about to charge soon, and can the S&P500 climb to fresh highs?
Here are the setups I’m keeping tabs on this week.
NZD/USD: 4-hour
This pair is pacing back and forth inside a range, which has support at the .6940 mark and resistance near the .7100 handle.
Price just bounced off the top of the range and is halfway through its move back to the bottom. Will support hold again?
Stochastic already made it to the oversold region to reflect exhaustion among sellers, so turning higher could confirm that a bounce would take place.However, the 100 SMA is below the 200 SMA to suggest that there is some bearish pressure in play. Then again, the gap between the moving averages has narrowed to signal weakening selling momentum.
The 100 SMA also seems to be holding as dynamic support, too!
S&P 500: Daily
This index might be ready to climb to fresh highs yo!
The S&P 500 has formed higher lows and higher highs inside a rising channel on its daily time frame, but the index is pausing to consolidate at the moment.
Another surge in risk-taking could be enough to take it to the channel top around $4,450 or perhaps even the $5,000 mark!
After all, the 100 SMA is above the 200 SMA to confirm that the uptrend is more likely to gain traction from here. Just be on the lookout for possible corrections since Stochastic is indicating exhaustion among buyers.
XAU/USD (Gold): Daily
Here’s one for the gold bugs!
The precious metal may have taken a big tumble lately, but it looks like the support at the bottom of its long-term descending triangle is holdin’ like a boss!If bulls keep defending this floor, gold could bounce back to the triangle top close to the $1,800 level.
Stochastic is still pointing lower, though, so there may be some bearish pressure left for another dip. The 100 SMA is also below the 200 SMA for now, but a bullish crossover might be looming.
Better be on the lookout for a break in either direction, too!
