Stronger USD Seems To Bother Gold A Lot

May 22, 2019

London (May 22)  Gold keeps going down despite quite big amount of risk around the globe (Trade Wars, Iran, Brexit). The main reason for that seems the stronger USD. Buyers are doing all they can to protect the major up trendline. They even managed to create two hammers on a daily chart. Normally, that would be a great buy signal but the problem is that the price is still going lower. Sellers look like they do not care about the long tail of the yesterday’s candle. Current situation does not look good for the demand and in my opinion, the price of this precious metal can go significantly lower.

We mentioned that the reason for the gold’s weakness is the USD and you can perfectly see that on the EUR/USD chart. Last week, EUR/USD managed to break the mid-term horizontal and dynamic supports. Yesterday, traders tested those areas as a closest resistance. The test was positive for the sellers and the price dropped straight away. As long, as we stay below those areas, the sell signal is ON.

Last instrument today is Crude. Oil managed to defend the long-term up trendline but is still in the flag formation, which after April’s tops, is a bearish trend continuation pattern. There is a simple way to trade this formation. Breakout of its lower line gives us a sell signal and the breakout of its upper line opens us a way to go long.

Silver Phoenix Twitter                 Silver Phoenix on Facebook