Yahoo Finanza Show Must Go On. S&P 500, Gold and EUR/JPY
Did you wonder what will be the cause of the next recession? As for now, that will not be a war between Iran and US and it will not be a Coronavirus. Stock traders made that pretty clear – they are no longer interested in this topic. Fair enough, after a short break, time to focus on the central banks again.
Traders on the SP500 are still voracious. If you saw or read our previous analysis, it should not be a surprise for You. New all-time highs are a fact and something tells me that it is still not the last time that buyers are celebrating this achievement.
If traders are so optimistic, gold should be like a hot potato, which nobody wants to hold in his hands. Wrong. Even stronger USD is not killing the bullish vibe here. Yes, the price creating a right shoulder of the head and shoulders pattern but we are still relatively high. As long as we stay above the major up trendline, buyers seem safe.
Last one will be a very handsome setup on the EURJPY. Beginning of February started with a crucial test of the resistances broken at the end of January. Test was positive for the sellers as the price bounced and went lower. Sentiment is definitely negative, just look at this: we are below the horizontal resistance on the 122.7, long-term down trendline and lower line of the wedge and a flag. Very rarely you can see more bearish setup than that.
This article was originally posted on FX Empire
