Are these trends about to turn a corner?
Don’t miss out on these potentially huge reversals on the long-term charts!
Gold (XAU/USD): Weekly
First up is this neat double top formation on the weekly time frame of gold. The precious metal is already hanging around the neckline, probably gearing up for a break lower.
Just how low can it go?If XAU/USD is able to make a strong break below the $1,700 support area, price could tumble by roughly the same height as the entire pattern. That spans roughly $400 yo!
Technical indicators aren’t so sure yet, though. For one, Stochastic is already pulling higher from the oversold area to reflect a pickup in bullish pressure. Also, the 100 SMA is still safely above the 200 SMA.
These suggest that the floor is more likely to hold than to break, likely sending gold back up to the highs near $2,100 or at least until the area of interest around $1,800-1,900.
Better keep your eyes peeled for candlestick clues around the 200 SMA dynamic support, too!
Here’s another potential long-term downtrend brewing!
I’m lookin’ at this sweet head and shoulders pattern on the weekly time frame of GBP/AUD.
The pair is already sitting on the neckline around the 1.7500 major psychological mark. Don’t miss out on a break below support since this could trigger a selloff that lasts around 4,000 pips.
The 100 SMA just crossed below the 200 SMA to confirm that there’s a strong chance of a breakdown.
Stochastic is on middle ground on its way up, but the oscillator seems to be changing its mind halfway through. Moving south might confirm that bearish vibes are getting stronger.
Lastly we’ve got this fresh triple bottom pattern forming on the 4-hour time frame of EUR/CAD.
Are we about to see a big reversal on this one, too?The pair is closing in on the neckline around the 1.3200 major psychological mark, and a break higher would signal that an uptrend is in the works.
Price also has to clear the 200 SMA dynamic resistance barrier, which might make the neckline a bit tougher to break.
Also, the 100 SMA is still below this slower-moving MA, indicating that the path of least resistance is to the downside. Stochastic looks ready to make its way down, reflecting a pickup in bearish pressure as well.
If euro bears continue to defend the ceiling at 1.3200, EUR/CAD might make its way back to the lows near the 1.3000 major psychological level.