What’s Next for EUR/AUD?

Something very interesting is happening in the EUR/AUD daily and weekly time-frames. After a long move to the upside the pair has been consolidating sideways for the past two weeks. Usually that sort of sideways consolidation is a signal that the move to the upside will continue, but on the other hand we have a very well-formed shooting star candlestick on the daily time-frame, which is a part of said consolidation, as well as a very well-formed hanging man candlestick on the weekly time-frame and both of these candlesticks are signals for a reversal. The end result is that we have a pair of conflicting signals. Which one of them is the valid one? In my experience it’s usually the signal that occurs on the longer time-frame, i.e. the hanging man candlestick on the weekly time-frame.  By that logic, the pair should start falling and its next target will be around 1.5250.

GBP/USD Is Moving to the Upside

Although for a while it appeared that GBP/USD may not be able to break above the resistance at 1.4640 because the pair briefly bounced off that level, later it formed a doji candlestick on the four-hour time-frame and once against started climbing, broke above that resistance, and then broke above the next resistance level at 1.4660. Currently the pair is still moving to the upside and I think it will likely continue climbing. Its next target is probably the previous high at 1.4769 and if we take a look at the monthly time-frame it becomes clear that a breakout above that resistance could lead a further move to the upside towards 1.5080.

Gold Is Moving to the Downside

Gold reached the resistance at $1,300, but could not break above that level and started moving to the downside again. Today it broke below the support at $1,240 again and continued falling, so it will likely soon reach the next support level at $1,220, which coincides with (MA)89 on the daily time-drame. Once it does reach that level there are two possible scenarios: it will either break below it and continue falling towards the next support at $1,200, or it will bounce off of it and likely start climbing towards the resistance at $1,270. I still have a short position open, but I will probably close it when it reaches $1,220 and wait for any further development before I open a new position in either direction.