Falling wedge on EUR/USD, trading long on Gold and Silver [Video]
|Gold and Silver both fell dramatically last Friday on optimism on the US economy and USD.
This may give us long opportunities on precious metals as price action on both has fallen to a lower trend line.
Also, the stochastic oscillator is very oversold and turning up.
If we move out to the daily charts the idea of an uptrend looks even more compelling and some indicators like the parabolic SAR are still bullish.
Both the S&P 500 and the NASDAQ have pulled back from their all-time highs so we are waiting for an opportunity to buy the dip.
If the optimism in the US economy continues this may work in our favor.
Also, keep an eye on the stochastic oscillator for technical signs of an upturn.
We are seeing CAD strength right across the board but watch out for tomorrow’s CPI, which will guide the BoC.
If inflation comes down, we may see a weaker CAD temporarily, to let us enter the trend at an advantage.
We are seeing a falling wedge forming on price action on EURUSD, which is generally a bullish pattern.
To find any key levels we have to zoom way out to the weekly chart where we see a symmetrical pennant and an oversold stochastic oscillator.
That’s all for now.
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