Trend spotting changes: has the market corrected?

Gold, or at least it’s XAUUSD derivative, purchases have been picking up for possibly the third week. By the end of this week, we should see gold hitting a Fibonacci retracement level as well as testing this descending trend line zone. Instead of watching gold, the focus is on AUD, especially the AUDUSD pair. First sign of a change is the moving average cross over.

AUDUSD MA Cross
AUDUSD MA Cross

My personal set up is a 20 exponential with a 60 period simple. This is long enough to filter out the noise during highly volatile conditions, but low enough to spot daily trends and plan intraday trades accordingly. I admit there are quite a few mixed signals here. There was an unsuccessful fractal high generated. I usually do not look at the fundamentals much, but this one is very important. China’s 2014 economic growth misses it’s target and investors fear the slowdown will extend into 2015. The full article can be found here. China continues to be a major importer of Australian goods and so the AUD demand will certainly be impacted to some extent.

Potential AUDUSD Entry
Potential AUDUSD Entry

Exact price of the upper zone boundary is 0.808723, however price can really penetrate anywhere in between. I still keep the option of a potential trend change open. No doubt I am leaning towards a bearish side in the very short term. One potential entry zone has been plotted so it’s just a matter of time to see how price reacts to it or close to it.

USDJPY buyers have resumed their place. My moving average trend spotting cross setup was confirmed just yesterday. Today we experience a descending channel breakout. It is now a good point to enter your buy and hold strategy.

USDJPY Buyers Resumes Activity
USDJPY Buyers Resumes Activity

I pulled trend trader monitor by FXStreet from my RSS aggregator. AUDUSD still remaind bearish, which I agree extending to the weekly and monthly time frames. Nevertheless, not much activity this month. I would consider a monthly doji formation at the moment, which is an early sign that this pair bottoming out.

Stay tuned for an update on silver!

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