Hello Friday! Be or not to be for many trading signals as today we are about to finish another weekly candle. There are some instruments, were the last week’s candle brought us a proper signal and in this week it is all about the confirmation. An example of that one is NZDCAD and that will be the first instrument in our short review.
This week was all about the confirmation of that long-term sell signal and most probably (as the day did not finish), sellers did a great job as we are about to close this week on new lows. That kind of price action can be considered as bearish and that is our view on this instrument.
Next one is gold, which finally reached our target – neckline of the head and shoulder pattern. Contact was positive for sellers as the price draw a nice hammer on the daily chart. As long as we stay above the neckline there is no sell signal. Actually, with that yesterday’s bounce, we may say that the sentiment is bullish.
Last one is the USDCHF, where we have a very nice bearish setup. Setup not signal though! For the signal we need to see a breakout of the lower line of the flag. What is interesting here is that the price is approaching a combination of 4 crucial resistances. If that is not a good place for a bounce than I do not know what is.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis