Charts: Gold (XAUUSD), GBPJPY, EURUSD
Disclaimer: I am not a professional trader and don't intend to trade all the setups if any. Everything depends on lower timeframe confirmation.
Gold (XAUUSD)
Gold has been trending down for some time, probably due to rising interest rates on US Dollar. However, it usually makes gains during the crisis, and the initial drop does not oppose that. In the early part of economic uncertainty, gold is being sold to cover margins elsewhere.
Trigger:
→ A double bottom at 1700 is in. I am waiting for lower timeframes to give me a good entry with reasonable SL.
Fundament:
→ Gold is generally viewed as protection against uncertainty. An economic crisis ahead or an energy crisis definitely qualifies.
GBPJPY
This is a chart I mentioned the last time. A triangle breakout can be seen in the long term. On smaller timeframes, I think a 14-day channel breakout would too be a valid interpretation. In the previous post, I said that I prefer to short this pair but a fundamental confirmation is necessary. That has not happened yet.
Trigger:
→ For the moment, this would be a valid long trade.
→ If anything suggests that the Bank of Japan will change its policy, taking short is risky.
**Sentiment: **
→ Many traders expected USDJPY to reach 140 and reverse from there. It moved through without any significant reaction. I still expect some profit taking to take place at these levels which could send JPY higher and as such, I will not open longs at this time, nor shorts that aren't supported by a fundamental change.
EURUSD
EURUSD appears to be on its way to 50 SMA/EMA again (red color in the chart).
Trigger:
→ I will be happy to take a short immediately after the chart shows me any pattern that would allow me to place a relatively tight SL. In previous instances, it always took at least 2 candles to test and reverse from 50 MAs.
→ A possible danger comes from the fact that EURUSD did not reach the bottom of the white channel this time. This could signify a major correction and a possible reversal. EUR has already dropped a lot after all.