The USD started this week on the back foot. Monday was especially painful but today, the depreciation of the USD is also continued. This is explained in many ways. Some of them are funny like the one that EUR is gaining because of the fears of the EU-US trade wars (Airbus (PA:AIR). What? Sometimes you read those headlines and you just cannot believe in those explanations. Anyway, here are three best trading occasions on the market right now:
EUR/USD made a head and shoulders pattern. On Monday, the price broke the neckline of this formation and today, we defended this line as a closest support. In theory, that promotes a buy signal. The closest target is on the 38,2% Fibo. Chances that we will get there are pretty high.
Next one is Gold, where the price is continuing the upswing started with the hammer on the neckline. We saw this hammer, we knew it increases the chances for an upswing and we traded that. The price is going up and with that defense of the neckline, chances for a further rise are higher.
Last one is the AUD/CHF, which managed to defend the long-term horizontal support. With that defense, the price started to make higher lows and highs, which can be perceived as a start of a new uptrend. Today, we are on the highest levels since the middle of March and we have a great opportunity to reach the tops from the beginning of February.