Hoping to catch some big moves and swing setups?
It’s not too late to ride the momentum on gold, GBP/NZD and CAD/JPY this week!
Take a look at these long-term inflection points I’m watching:
Gold (XAU/USD): Weekly
Heads up, gold bugs!
Bearish vibes seem to be returning for the precious metal, as price is forming a descending channel on its weekly time frame.
Resistance around the $1,900 mark kept gains in check, putting gold on track towards testing nearby support zones.
Sellers might be setting their sights on the mid-channel area of interest around $1,750 or the very bottom of the channel at $1,600.
Technical indicators are looking mixed for now, though.
Stochastic is almost halfway through on its move to the oversold region, suggesting that bears have the upper hand and could keep the selloff going.
On the other hand, the 100 SMA is above the 200 SMA, suggesting that bullish pressure might still be in play.
Then again, the gap between the moving averages is narrowing to reflect slowing upside momentum and a potential bearish crossover.
Just watch out for reversal candlesticks around the middle of the channel and the 100 SMA dynamic support in case gold bulls decide to charge right here.
GBP/NZD: Daily
Next up, we’ve got this descending triangle pattern forming on the daily time frame of GBP/NZD.
The pair finally bounced off support at the 1.8850 minor psychological mark and might now be aiming for the triangle top again.
Stochastic still has a bit more room to climb before indicating overbought conditions, so buyers could keep the rally going until the oscillator turns back down.
Also, the 100 SMA is slightly above the 200 SMA to hint that the path of least resistance is to the upside. GBP/NZD just has to break above these dynamic inflection points again to confirm that more gains are in the cards.
However, if the near-term ceiling holds and Stochastic starts heading south, another test of the triangle support might be in order.
CAD/JPY: Daily
If you’re feeling a bit more conservative in terms of catching trends, then this break-and-retest setup might be more up your alley!
CAD/JPY fell through the floor around the 102.50 minor psychological level late last year and now seems to be in the middle of a pullback to this area of interest.
The handy-dandy Fib tool shows that this lines up with the 50% level, which might be enough to attract more sellers. After all, the former support region also lines up with the dynamic inflection points at the moving averages.
The 100 SMA just crossed below the 200 SMA to confirm that bearish momentum is taking hold while Stochastic looks ready to move down from the overbought area.
If sellers return soon, CAD/JPY could resume the drop to the swing low close to the 95.00 handle. A higher retracement could reach the 61.8% Fib near the 104.50 mark while a shallow one might already hit a ceiling at the 38.2% Fib at 100.70.
