Gold at record highs – Silver rallying to resistance [Video]

In our last video, we spent a lot of time looking at the economic calendar and all the central bank interest rate decisions.

Let’s look at what happened and why.

The big surprise was the SNB lowering Interest Rates from 1.75% to 1.50%.

You can see what happened as CHF suddenly went very weak.

Unfortunately for traders, most of the moves went with the current trend so, unless you were already long on USDCHF for example, it gets a bit tricky.

The idea now is to look for a reversal or where price action went against the trend.

For example, NZDCHF was already in a slight downtrend when the news was released and price action has bounced off resistance.

Before going short, however, look for confirmation on lower time frames.

The US Federal Reserve did not change its Rate but at the press conference afterward, Jerome Powell made it quite clear that they would this year.

This sent USD lower very quickly but, in many cases, against the trend giving us price action reversals to trade.

For example, on AUDUSD with the stochastic oscillator showing very overbought. 

By the way, the RBA kept their Interest Rate the same as well.

Similarly, NZDUSD, EURUSD and GBPUSD as well.

The BoJ raised its Interest Rates above 0%, finally, but the Yen got weaker as the talk of low growth and high debt did not help.

If you saw Monday’s video we pointed out a pullback in the bull run on Silver and the weaker USD helped it on its way.

If we zoom in to the 1-hour chart we can see one of our favourite chart patterns, the falling wedge, and its bullish nature showed with this big jump in price.

Moving out to the weekly chart, we see that price action is near resistance and the stochastic oscillators heading into overbought territory so we may be looking at a reversal soon.

We had the same situation on Gold but prices are at historically high levels and analysts feel that it may go higher as a safe haven asset.