You know that in our trading Sniper videos, we always show three of the best trading setups on the market. This Monday morning, gold is the hottest story and could easily be viewed as a big trading occasion as it hits new all-time highs! Well, it definitely is a top story, but not necessarily a trading occasion. There is a possibility it will go even higher, but price action traders won’t be rushing to buy gold, now that the risk-reward ratio is not at desirable levels. So even though gold is the hot topic of the day we will be analyzing the US dollar.
Let’s start with the GBPUSD, where buyers are pushing forward encouraged by two significant breakouts. The first one is the breakout of the upper line of the symmetric triangle and the second one is the breakout of the 1.277 horizontal resistance, which has been crucial for the Cable since 2019. The price closing the day above that resistance, will be an extremely strong buy signal.
The second pair is the USDJPY, which we’ve mentioned many times in the last few days. During most of July, the price was locked inside the triangle pattern, and we’ve mentioned that a breakout of the lower line of this pattern would give us a proper sell signal. The breakout did happen but the scale of the drop was surprising. Not only did it go through a significant drop but the price also broke a crucial support on the psychological 106 barrier. Sentiment here is negative.
The last pair today is the AUDUSD, where the USD is also lower. From a technical point of view, the buy signal for the Aussie comes from the bullish breakout from the wedge pattern. As long as the price stays above the upper line of this formation, sentiment is positive.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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