Wednesday, 14 May 2014

AUD/USD testing resistance at down trend line from October 2013 high

Gold constrained by short term trend channel

Gold is currently constrained by the illustrated trend channel. Expect an eventual break in the same direction as the preceding trend (ie. down), but as always in trading be prepared for the opposite eventuality. Another interpretation is that Gold is forming a continuation Head and Shoulders (see chart).

S&P 500 must beat short term trend channel resistance to push to new record highs

In order to push to new record highs, the S&P 500 must first beat short term trend channel resistance. Until that happens, there is scope for a counter trend move.