Bullish continuation patterns for Gold, Silver, Euro & British Pound

July has been a goldmine for traders in the Trading Cup, pardon the pun.

Gold has been trending quite well, with the occasional breakout. And the overnight price action was no different.

Gold rocketed higher, which saw many new Gold bulls rocket up the leaderboard.

Here is a snapshot of the leaderboard as of this morning.

Leaderboard.png

Zhen Wang has been patiently stalking Gold, riding a long position, with his patience rewarded with a massive 711% gain on his $2,000 account.

Yuan Wang also managed to increase his lead, sitting comfortably in second place on 358% return.

And a well-known competitor, who made it to the 2019 Grand Final table, Gustavo Correa, managed to jump to third place, sitting on an impressive gain of 185%.

Once again, the shiny metal has captured the eyes and trading volume of a huge percentage of our leaders, and for good reason.

Let's take a look at Gold in more detail.

Gold rockets higher, a touch off all-time record highs

As mentioned in Monday’s blog post, Gold was setting up for a potential breakout.

And it didn’t take long for the bulls to jump on this breakout, pushing it from the breakout level at $1,818 to where it is now at $1,845.50.

What we often see in an ascending triangle pattern like this, is a short rapid push higher on surging volume, and this breakout was no different.

XAUUSD.png

In terms of the Trading Cup leaderboard, it looks like several contestants were eagerly watching for this breakout, as we can see by the move with the top ten traders.

From here, many technical traders try to ride the momentum of a bullish breakout like this as much as possible but also remain aware of a potential pullback to the new support level.

The Eurodollar rockets higher as the US dollar pulls back

We have been watching the bullish momentum on the Eurodollar for the past few weeks, and the breakout to new short-term highs was no surprise.

On Monday, we suggested watching for a bullish breakout on the Eurodollar along with a bearish break lower on the USD/CHF Forex pair.

Both of these calls came to fruition for those catching up on the analysis.

Did you manage to get either of these moves?

As you can see in the chart below, the Eurodollar had a clear resistance band, with highs extending back to the 9th of March 2020.

EURUSD.png

Prices on the EURUSD pair were boosted by the recent EU deal, which includes up to 1.8 trillion Euros in spending. This also helped drive the price of the British Pound higher too.

Silver benefiting from Gold’s move and safe-haven status

One instrument we haven’t covered much is Silver.

Silver hit fresh 6-year highs overnight, as the price of the US dollar came under selling pressure.

Many analysts have chimed in to suggest that Silver is a safer store of value during these uncertain times.

Technical traders only had to follow the recent price action, which saw the uptrend from mid-March, lead to a consolidation in June, to a powerful breakout over the last three days.

The chart below captures the move in Silver beautifully.

XAGUSD.png

In relative terms, Silver has a lot of use among industry, and with Covid-19, we have seen uncertainty among traders to go long.

But as more countries re-evaluate their Covid-19 policies and optimism grows, we started to see an enthusiasm for Silver as an alternative to the likes of the US dollar.

Silver is up 16.57% since the close on the 16th of July.

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Ashley Jessen // Author of CFDs Made Simple, Head of Marketing at ACY Securities

Ashley Jessen is the author of CFDs Made Simple and Head of Marketing at ACY Securities. He has been in the financial services industry since the year 2000 and worked for some of the leading companies in the CFD, Forex and Online Trading space.