Gold reverses its short term trend

Gold has been falling in an orderly fashion and reaches the 1200.00 zone, round number level which could act as a support, but the MACD indicator on the daily chart is showing us that the trend reversal has been confirmed to the downside. The MACD line (green line) has crossed below its signal line (red line), indicating that the trend has changed to the downside. The histogram’s bars are getting bigger and that is an indication that the trend is gaining strength to the downside. Apparently gold has lost its shine as a safe haven asset and if the FED raises its interest rates then it is possible for the precious metal to continue falling. However, in order for the downtrend to continue in the midterm, it is necessary for the price of gold to break below the 1200.00 level. In the short-term we could see a bullish pullback, which could be healthy for the bearish trend to continue, but the 200 day EMA (blue line) at the 1232.38 level could act as resistance.

Bearish breakdown on silver

Silver has broken below its 200 day exponential moving average, blue line, which is around the 17.40 level as shown on the daily chart. Silver had a good bullish trend, but once it got to the high around the 18.40 level it started pulling back rapidly, something that is really amazing. From the current level, the price of silver may continue lower, since it seems like that bearish momentum is accelerating. If it continues dropping, silver may try to reach the low at the 16.60 level, which could act as support. But a more important support level could be located at the low of the 15.61 zone. Regardless of the huge drop that silver is showing, it may try to make some bullish retracements. In case the price retraces to the upside, the 18.00 level may act as resistance. Will the price of silver continue dropping towards the 16.60 level?

Possible trend reversal on gold

Gold has fallen 0.60% so far during today’s session and it is continuing with the bearish correction that started on January 27^th. Gold and the US Dollar usually have a negative correlation, which means that when the Dollar rises, gold falls. Lately, the Dollar has been in an uptrend and that has put some pressure on gold prices. If the FED stays in course to rising interest rates that could give the Dollar a push and gold could continue falling. On the daily chart of gold we can see that the commodity is accelerating its drop below the 200 day EMA, around the 1232 level and according to the MACD indicator, it is possible that the trend has reversed to the downside. If the bars of the histogram on the MACD continue getting bigger and the price of gold breaks below the 1200 level, then we could say that the precious metal has changed its trend to the downside. On the other hand, it is possible for the 1200 level to act as a support in case the price falls to that zone.

The NZD/USD loses ground again

During Friday’s session, the NZD/USD dropped really fast towards the 0.7000 level, but at the same time it bounced right back up to close the daily candle as a “hammer” formation on the daily chart. The “hammer” pattern is a reversal bullish formation, which is confirmed when the following candles are bullish or to the upside. In this case, there was no confirmation of the “hammer” pattern, because today the price of the NZD/USD drops again and visits the 0.7000 zone. It is possible for the pair to continue dropping and it could go and visit the 0.6900 level. The 0.6900 level has acted as a support in the past and another visit to that area could stall the pair there and it may even cause a bounce to the upside. In case the pair bounces from the 0.7000 level, its next relevant support is at the 0.7100 level where we can also see the 200 day EMA. Above the 200 day EMA there is a congestion area with a resistance at the 0.7246 level.

The Mexican Peso rallies again

The USD/MXN breaks again below the 200 day moving average, around the 19.82, but this time it does it with a lot of strength. The drop in the pairs is due to support given to the Mexican Peso by US officials, which are considering that the rally on the US Dollar versus the Mexican currency is not convenient for either country. Therefore, it is possible to see some sort of intervention in the near future on the USD/MXN. Technically, we can see that the drop accelerates from the 200 day EMA due to the consolidation that was created on top of that moving average, indicating that the sell orders were accumulating there. That is why once the price breaks the 200 day EMA, the drop accelerates rapidly. If the pair continues falling, then the 19.00 level may act as support. To the upside, in case the pair goes back above the 200 day EMA, then the 55 day EMA on the 20.41 level may act as resistance followed by the 21.00 level.

ActivTrades: Enhanced Protection

As one of the most professional and trustworthy brokers, ActivTrades is a leading company in the protection of its client’s funds. The main goal of the company is to make sure that its clients feel safe and secure when doing their trading. All the clients at ActivTrades can enjoy amazing benefits like having a negative balance protection on their accounts, which makes sure that even if for some reason you accounts falls below zero, the balance will be adjusted back so that you don’t have to pay for any negative balance. Besides this, all client’s accounts are kept in a segregated account, apart from the company’s finances to make sure that no matter what happens to the company, your money is secure and safe from prosecution. All accounts at ActivTrades are insured according to FCA rules in up to 500 thousand Pounds. But if you have more than that amount in your account, you can always purchase additional insurance for your funds. Please visit the following link for more information on all the benefits of trading with ActivTrades:

https://www.activtrades.com/en/clients-funds-protection

In conclusion, you may feel safe when opening an account with ActivTrades; therefore, you may focus on your trading and be successful without any worries about the safety of your capital and your earnings. 

GBP/USD: Bearish breakdown

The GBP/USD has been in a consolidation, oscillating in both directions around the 55 day exponential moving average, purple line, as we can see on the daily chart. Actually, the pair has formed what it appears to be a symmetrical triangle. During the last two sessions, the Pound has started to lose some ground versus the Dollar and it has broken below the lower trendline of the triangle, reaching the 1.2300 level where it has stalled at the moment. From this point the pair may continue lower and if it does, then the 1.2200 level may act as support, followed by the 1.2100 and finally the 1.2000 level. In case the pair goes back up, it will be entering the congestion area around the 55 day EMA and it would have to break above the upper trendline of the triangle in order for it to change its trend to the upside.