Five Contestants Rocket Higher Plus a Review of Gold, EURUSD & Dollar Swiss

Traders in stage 2 have a full two weeks of trading left, with competition heating up at the top end of town.

As you can see from the leaderboard, we now have four competitors with gains over 200%, and victory could go to any of them.

But as we’ve seen from Stage 1, there is every chance of a strong move from anyone in the top ten, especially if trading opportunities move in their direction.


Gold is sitting on the cusp of a potential breakout

The favoured trading instrument continues to be Gold among the leaders.

As you can see from the chart below, Gold continues to wedge into a potential breakout, forming a tight ascending triangle pattern.

This is where prices continue to lift, with higher lows, but hit a common resistance point.

The price action we tend to see here is those who are long Gold do not want to see, as they are optimistic of a potential move higher.

Whereas new entrants also note it is sitting on resistance.

What characterises an ascending triangle is the falling trading volume as those long refuse to get out of their positions, thereby reducing the available liquidity as the uncertainty of price action continues.

Then we tend to see a break of the key resistance level, accompanied by a massive increase in volume, as buyers who were waiting for confirmation, get their signal to go long.

It is not unusual for a pattern of this nature to have a short sharp move higher on the day of the breakout.


Eurodollar pushing higher

Despite rumours that the Eurodollar is likely to fail at the current resistance point, we can see the bulls had been steadily buying up the Euro since the recent lows a month ago.

The rumours of a pullback, all stem from negotiations over the EU recovery fund.

But traders are no doubt focused on the short-term volatility and whether we’ll see a breach of resistance to the highest level since January 31, 2019.

Will we see the negativity overcome and a new, more dominant uptrend replace the current long-term downtrend?

Regardless of the medium to long term projections, we should expect increased volatility at this critical technical stage.


Is a breakout imminent on the USDCHF Forex pair?

Dollar Swiss continues to test support levels, with a possible break a firm possibility.

The chart below is showing a clear descending triangle breakdown on the daily chart.

If traders decide to sell the US dollar relative to the Swiss Franc, and support is broken, the next key level of support is approximately 140 pips lower.

The low on the 9th of March 2020 is a full 200 pips lower from the current price.

The USDCHF, while not a favourite among the leaders in the Trading Cup, could provide the volatility required for those looking to increase their rise up the leaderboard.


Remember, trading leveraged products carries risk of loss and you do need to take into account your risk tolerance before trading.

Are you ready to join the next Stage? Click here to register an account.​​​

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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.