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Nice Movements On The Dollar

ByAxiory
AuthorTomasz Wisniewski
Published 01/20/2021, 09:48 AM
Updated 01/03/2021, 09:10 AM

Definitely in the center of our attention today is the US Dollar. The main reason for that are the engaging technical situations we have on many assets paired with the USD. Since Jan. 6 the Dollar was gaining value. On the other hand, the last few days showed us the greenback weakness but today it is back again in the positive territory. This may sound like a real rollercoaster but let me show you three great trading occasions, which will make it much clearer.
 
First instrument is GBP/USD – Cable, where we do have a classic technical situation – the price is strongly bouncing from the crucial horizontal resistance on 1.37. This is the fourth bounce in January and it seems like a good selling opportunity. Negative sentiment will be cancelled once the price will close a day above 1.37  but for now this is not very likely.
 
Another one is the NZD/USD, where we also have a very clear technical situation. The price created a head and shoulders pattern, then broke its neckline and the main down trendline. Now we have a flag, which just managed to test the neckline as a closest resistance. Price Action rarely gets any better than this. This strongly favors the bearish camp.
 
Now let's move to Gold, which in opposite had a handsome buy signal. Recent strength of the USD is making this signal vulnerable but buyers are still fighting. What we have here is a double bottom formation with the price currently trying to break the neckline of this pattern. Once it succeeds, the buy signal on Gold will be ON.

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