Last week when gold broke the triangle on a daily chart to the upside I asked what leads and what follows. It is clear now... Gold regained 1000 level, oil is above 70 and international equities are all in black. As a consequence USD has been sold relentlessly across the board. Largest moves seen over the past 24 hours in EUR (+1.22%) and CHF (USDCHF -1.39%). USDCAD continues its downmove it started on Friday after employment report surprised to the upside 27.1k vs -12.4k.
Considering the magnitude of the move additional follow through is likely. 10, 20 and 30 EMAs are stacked in correct order pointing to further USD selling. Trading strategy should be based on selling USD on strength. However, for today the move is likely to be exhausted, plus EUR is facing a trendline resistance on a daily chart. Selling EUR now against the swing high makes sense. Limits at 1.4460
Good Trades.
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