We may be about to witness a bullish breakout following a rounding bottom pattern, to mark the end of a correction from the $168.25 hi in Jan
GoldAUD is often overlooked by traders who focus on AUDUSD. However in times of uncertainty GoldAUD can often yield better returns as we are trading a safe haven directly with a riskier asset, the Australian Dollar. So if Gold is rising due to uncertainty we can usually expect AUD and NZD to weaken as investors remove funds from risky assets and pile into safe havens.
Technically, the $1492 March low close outside of the lower Bollinger Band and has since formed a rounding bottom. This also comes at the end of a decline from the $1683 high which gradually lost momentum, with today’s price action crossing above the 20 and 50 day exponential MA. Assuming this is the end of a correction from the $1683.25 high then this currency pair should remain in your watchlist for bullish setups.
We may find that last Thursday’s high of $1539 may see a price reaction as traders’ book profits to produce a mild retracement. However as the near-term bias on D1 is now bullish we can refer to lower timeframes to seek bullish setups towards $1554.40 and $1573.32 targets.