Gold somewhat bearish, this is to push AUD lower (16/04/2019) 12:35
Gold has been forming what seemingly looks to be a head and shoulders formation which indicates/signals a potential fall in the price of gold. With Australia being on of the biggest exporter of Gold, we are off the belief that it will negatively affect the Performance of AUD as a currency. Especially now that Gold seems to have broken the neckline and thus triggering the pattern. This indicates the beginning of the drop in price and we forecast AUD to follow suit. AUDUSD is now reacting to the descending trend line which is acting as resistance, furthermore, the market is in the fib zone. Lastly the price is overbought, which then indicates that the current upward move on AUD may have come to an end.