Brad Alexander
FX Large Limited
Last week we saw price action on gold in a symmetrical pennant and the stochastic oscillator looking very oversold.
We are still there but are we now looking at a descending triangle?
Symmetrical Pennants are usually continuation patterns while triangles can go either way.
If price action on gold breaks support and we see tensions easing in the Middle East, will we see a fall in gold?
Silver is consolidating as well but in an ascending triangle which could go either way as well.
On both gold and silver, be aware of lots of economic news affecting USD like an FOMC statement, CPI, and PPI.
Also, tomorrow we have an Interest Rate decision from New Zealand and a 0.5% drop is forecast.
If this prediction is wrong we will see volatility.
And, traders and analysts will be examining the RBNZ statement for clues to future decisions, affecting price action.
As we can see, NZD is weaker this month based on the predicted rate decrease.
If we look at just one example, we can see just how strong the movement has been on NZDUSD on the daily chart.
Price action has clearly broken out of this bull run from August.
We have a key level just below and we are looking at a very oversold stochastic oscillator.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.1000 ahead of Fedspeak
EUR/USD moves sideways in a tight range below 1.1000 on Monday. The data from the Eurozone showed that Retail Sales rose by 0.2% on a monthly basis in August as forecast, failing to boost the Euro. Investors await comments from Fed officials.
GBP/USD struggles to recover above 1.3100
GBP/USD stays under bearish pressure and trades in the red below 1.3100 on Monday, erasing early gains. The pair is undermined by a negative shift in risk sentiment but the downside remains limited as the US Dollar struggles to build on previous week's gains.
Gold retreats below $2,650, remains confined in a familiar trading range
Gold price remains on the defensive amid reduced bets for a 50 bps Fed rate cut in November and trades below $2,650 to start the week. The USD consolidates last week’s strong gains and exerts some pressure as investors keep a close eye on geopolitics.
Is Dogecoin ready for a rally?
Dogecoin price extends gains on Monday after retesting its support level last week. This rise is supported by DOGE’s daily active addresses, an on-chain metric that has spiked to the highest level since early April.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.