Vantage FX Chart of the Day

[Vantage FX]

Chart of the Day:
With all the Forex action lately, Gold Trading hasn’t been given the attention it deserves. Today’s chart of the day takes a look at XAU/USD.

Gold Weekly:

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The Gold weekly chart sees price still buzzing around the major support/resistance zone between 1156 and 1208. With the Fed pushing back interest rate hikes, the break below this major level couldn’t be sustained and we’ve rallied back up to re-test the zone this time as possible resistance.

Gold Daily:

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Zooming into the daily chart, we see a few short term channels and triangles being broken and respected. The short term bullish channel is still in play, with price pushing towards the upper line and coinciding with the marked horizontal level where price reacted before.

I don’t want to fight this new found bullish momentum and am looking to play from the long side on pullbacks while price is above 1156. Just keep in mind the possible re-test of the weekly support/resistance zone.

Do you see opportunity in Trading Gold?

 

[Vantage FX]

Chart of the Day:
With the Aussie and Kiwi so often moving hand in hand, after yesterday’s AUD/USD chart in the Daily Market Update, we today take a look at NZD/USD.

NZD/USD Hourly:

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It’s the same story across the Tasman, with price bouncing after a long and sustained down trend. It is this short term bounce that has given us the above hourly trend line.

This Kiwi chart has given you opportunity after opportunity to buy each trend line re-test, with confirmation being the broken short term flags that show momentum is still with the buyers. You can learn a lot in hindsight by looking at this chart and how price reacts to, and moves between support and resistance zones inside trends.

Do you still see opportunity in this NZD/USD Technical Analysis?

 

[Vantage FX]

Chart of the Day:
The last time we took a look at US stocks was at the beginning of October when we were watching for any action around end of quarter Indices squaring. With things settled once again and a new quarter in full swing, we take another look at the SP500 in today’s chart of the day.

SP500 Weekly:

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The SP500 weekly shows price having broken the major bullish trend line when stocks were ripping faces off and the world was going to end.

Of course none of the doom and gloom came to fruition and price has pulled back all the way to re-test the broken trend line as possible resistance. The fact that this re-test lines up with the 2nd trend line I have marked on the chart adds extra significance to the level.

SP500 4 Hourly:

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I’ve added a short term channel in red to the above 4 hourly chart, adding to the confluence of resistance forming in this zone. As you can see, there are plenty of levels to the upside that you can manage your short risk around if you want to play the fading game.

Do you still see opportunity in this US Stocks Technical Analysis?

 

[Vantage FX]

Chart of the Day:
We spend a bit of time going over the Gold chart and I often get asked what about Silver? Silver trading respects major technical levels just as well, highlighted by one weekly support resistance zone that we are going to take a look at today.

Silver Weekly:

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The marked support resistance zone has been touched multiple times both on the way up and down. Price has most recently rallied out of the level, but is still in a huge bearish trend from the 2010 highs.

Your trading plan of attack here would be to decide if you want to go with the overall trend or if you want to use the weekly support level to manage your risk around, and play for a change of trend.

Silver Hourly:

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I’ve included the hourly chart just so you can see the sort of pops that can come about while trading silver. The hourly chart shows the top of the support/resistance zone and then the huge, momentum rally that we got out of the level.

Is this your last chance to get long at these prices or are you going with the trend?

Find more Gold and Silver technical analysis on the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
To compliment Wednesday’s look at the SP500 chart, we today take a look at little brother: The SPI200.

SPI200 Daily:

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The Aussie SPI has also experienced somewhat of a recovery from its Black Monday drop where it fell hard through resistance and confirmed its bearish trend by making a lower low.

The key levels on this chart are the bearish trend line and the horizontal support/resistance zone that price has now pulled back to re-test. If these two levels can line up then that just adds to the significance of the level.

SPI200 4 Hourly:

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If this chart looks a little strange, it’s because I had to shift the timeline across so as to fit a key 4 hourly touch that helps highlight the importance of the red zone that we currently have in play.

The 4 hourly is to show the short term channel or flag pattern that sees price pulling back toward the major trend line where we expect a reaction. Yes, we have horizontal resistance in play, but the major trend line is still relatively far away and while we are still inside the middle of this short term flag, I’m not jumping out of my skin to sell. Yet.

This one is still playing out and open for discussion. Can you see the opportunity in trading indices on MT4?

 

[Vantage FX]

Chart of the Day:
Following on from the evolving narrative of Euro weakness that we spoke about above, today’s chart of the day takes a look at the Swissy.

EUR/CHF Daily:

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Central banks can huff and puff, jawboning until their heart is content, but the market is always right and the market will always get what it wants. And right now, that is to sell Euros against the Franc.

Take the better prices to short into and run with them. The snap down will come and it will come twice as hard as any short lived rally off technical support and a jawbone.

Do you see opportunity in trading the Swissy?

 

[Vantage FX]

Chart of the Day:
Today’s USD/CHF chart of the day is a follow up to yesterday’s EUR/CHF chart. After posting yesterday’s Swiss Ramble blog, the discussion of Euro weakness came up on Twitter.

USD/CHF Daily:

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Compare the two charts and you can see just how weak the Euro has been recently.

With price bouncing off trend line support and then rallying through resistance that formed the daily triangle pattern, we now sit at a short term swing high.

I’ve never really been much of a breakout trader myself, and can see the higher probability play being letting price tuck back into the triangle. It’s just too clean to be a textbook breakout.

Do you see opportunity in trading the Swiss Franc?

 

[Vantage FX]

Chart of the Day:
When I read these reports and see ugly line charts that aren’t easy on the eye, I immediately flick to another window. So if I’ve lost you, I understand but if you are still reading them lets take a look at why I included it in today’s chart of the day:

AUD/USD Weekly:

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I had to zoom out this far to show the weekly trend line that is still in play when we zoom into the hourly chart.

AUD/USD 4 Hourly:

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So now we can zoom back in again and see what’s happening around the line in more detail. I’m going to leave this one open and just ask you a question.

Do you see opportunity in this AUD/USD technical analysis?

 

[Vantage FX]

Chart of the Day:
We continue our Aussie dollar theme with a look at the EUR/AUD cross in today’s chart of the day.

EUR/AUD Daily:

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After breaking key resistance at daily swing highs in August, price has since pulled back to the level and re-tested it as support. Price spiked down through the lows to clean out any weak longs (and their lazy stops) before gaining some traction and rallying back up.

In this bullish move, price had also formed a short term trend line that was broken as it re-tested key horizontal support. As this is a cross, I don’t like putting too much weight into trend lines, especially short term, steep trend lines like this one, but the re-test is there all the same.

Even if we get an ‘on hold’ decision from the RBA, it is sure to be accompanied by a more dovish statement from the RBA. If this scenario plays out, falls in EUR/AUD seem limited. Like I said, banking on these steep, short term trend lines holding on the crosses is not something that you would risk your house (or your trading account) on. Buying dips back into support looks my favoured play into the RBA.

Find more RBA trading analysis in the Vantage FX News Centre.

 

[Vantage FX]

Chart of the Day:
Going to give some love to one of the lesser traded Commodities on the Vantage FX Market Watch: Palladium.

“Palladium is a chemical element with the symbol Pd and atomic number of 46. This metal was named after the asteroid Pallas, which was itself named after the epithet of the Greek goddess Athena.”

XPD/USD Daily:

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The setup is just an overall bearish trend line with price flagging almost vertical back up to test the resistance level again. The fact that resistance lines up with the previously broken horizontal support level adds some confluence to the level. Keep your eye out for any short term resistance levels forming or slow down in price momentum and fading into it looks to be the play here.

The volume that goes through our Palladium book is minuscule in comparison to big brothers Gold and Silver but this post has me on a mission to find a successful trader with Palladium (or Platinum!) incorporated in their strategy. If you trade it yourself or know someone else that does, give @VantageFX a mention over on Twitter or leave a comment at the bottom of this post.

Is the RBA Hawish? Read more discussion in the Vantage FX News Centre.