On the markets, we are back to risk ON mode. Traders all over the world are allocating their money in safe-haven assets, escaping from those risky ones. Now let’s look at the reasons for this change. Trade Wars? Argentina? Hong Kong? Political crisis in Italy? To be honest with you, if the market is going down because of Argentina, it means that something is wrong with it. I mean that sentiment is very fragile and if such an irrelevant event can hurt traders, the big – significant event, will crush them.
Gold is having a great time recently but we just reached a crucial resistance. This is a combination of horizontal resistance and the dynamic one. Price getting there does not mean a reversal but definitely is a good place for at least a bearish correction. To go short, you will need much more than that, you will need an actual drop in the price first. As for now, buyers are winning here on every single timeframe.
Another important commodity – Brent Oil is going the opposite direction – down. The price broke the lower line of the symmetric triangle and the horizontal support on the 59.6 USD/bbl. Since the 7th of August, we do have a bearish correction but yes, this is just a correction. The price should not rise above the blue area and it seems that we are currently waiting for another leg down.
Now, NZD/USD, where the price is coming back to the movement created by the interest rate cut, so a downswing. For few days, traders were correcting the initial drop but the down trendline got defended, showing the determination from the bearish side. As long as we stay below the red line and actually make lower lows and highs – the sentiment remains negative.
Safe Heavens On The Rise Again: Gold, Brent , NZD/USD In Focus
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.