The British Pound, here shown in GBPAUD, is still a short overall. The weekly trend has been continously down and will most likely continue its market direction. Another fractal down had been hit two weeks ago, even though price is trading sideways currently, there is no major support price is sitting on that could lead to a stronger reversal ending the downtrend. Patience matters here, still, until further losses for GBP will show.
The USDollar did breakout to the upside about two months ago, but since then the wasn’t able to gain strength against the it’s measured against. Therefore we’re seeing a continuous correction without much power. Instead last week closed below the balance zone and there is no reason anymore to try to long on this market. More patience is needed to wait for this go continue what could be a last leg upwards. Let’s not get ahead of ourselves though, right now it’s waiting for the breakout .. again.
After a breakout had been hit into the overall trend direction (down) about two months ago, the EURUSD has not been able to continue this direction. Instead the pair traded on top of that breakout level, only to move higher towards mid of last week. Now it seems we are approaching the major resistance that EU has been respecting for more than one year now. We’ll see if that level holds, or if broken, there is no more reason to look for shorts or stay short. The coming weeks should be interesting in this regard.
The situation hasn’t changed in the precious metals (Gold), even though the last month hasn’t given us any progress towards the long side, this market remains above the balance zone on the overall timeframes, which means there is only one direction to trade this: long. It’s a patience game to wait for the continuation of the still ongoing uptrend, even though lower levels are possible before that happens. So far there is no reason to exit longs if you are trendtrading the higher timeframes.
There is no reason to call the top in the US. Even though even Soros and Faber are doing it, you should just trade the markets, since these guys don’t know more than the price of what they trade, just like you. Everyone calling for the end of the rise in the are totally off imo, just look at your chart and see how prices are rising. Even though the last 5 weeks haven’t done too much, there is no reason to exit longs. Instead, exert patience once more to be there when this continues upwards. Should it not, have your stop in a smart location to minimize your loss.