The wedge b/o on Gold continued last session but the only other decent movement came from GBP weakness as post-Brexit trade deals talks reach a deadlock. Momentum remains low across many instruments so keep watch for any new momentum-based trend line breakouts.
Last week: The four US stock index majors of the S&P500, DJIA, NASDAQ and Russell-2000 closed at new all-time Highs despite the weaker than expected US monthly payroll report and the growing number of US Covid infections. Other risk-sensitive assets such as Copper, the Emerging Markets EEM ETF, the ASX-200, the AUD/USD and NZD/USD all […]
US$ weakness has continued which helped to trigger the wedge breakout on Gold, new breakouts on AUD pairs and extend gains for the EUR/USD. The risk-on vibe extended to stocks as well with the S&P500 making a new all time high close.
The US$ has tumbled as risk sentiment continued to improve last session with the S&P500 making a record high close and the EUR/USD breaking free of the 1.20 level. This US$ weakness has helped Gold to recover and the upper trend line of bullish descending wedge is now in greater focus.
Monday saw some profit taking across stock markets as the US$ index continues to hold above 91.75 support and Gold holds above $1,770. Watch for any potential sideways activity until Friday’s US jobs data report.