Trade view /
23 September 2016 at 7:45 GMT
USD Index: Holding within the bullish Ascending Triangle formation. This has resulted in the medium-term bias remaining bullish but intraday trading is most likely to be mixed and volatile and a retest of trend support (at 94.75) is probable.
Source: Saxo Bank
Going to look at gold (XAUUSD)
Monthly: Holding within an Expanding Wedge formation that has an eventual bias to break to the upside. Posted a Morning Star formation from November 2015 to January 2016. For the last three months we have failed to break the trend of lower highs. However, the bias remains bullish on a break.
Weekly: The commodity broke through trend line resistance at 1,303 on June 20 and, although we had a potential reversal candle on the week of July 11 (Bearish Outside Bar), the move lower has been mixed and volatile (corrective) while failing to break through, what was resistance, now becomes support.
Daily: This timeframe highlights gold in a corrective channel or bullish Ending Wedge. With Wednesday's price action posting a bullish Outside Day, there should be limited downside. Yesterday did post a Doji style candle so we would look to buy dips. The Marabuzo level from September 21 is seen at 1,324. Bespoke support is at 1,326.
On a move through trendline resistance at 1,346 stop can be placed at entry
1,295 (below the wedge)
1,375 (wedge target) 1,392 (previous high Mar 2014)
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more