+120 Pips from Gold + EURUSD Longs?

As the Dollar heads lower, Gold longs continue to surge into profit. With that in mind, traders can also look to long EURUSD as it hints at another rally.

Price action analysis completed on Gold yesterday suggested that the price was ready to fill out the previous daily range. The daily closed as a hammer which was enough confirmation for traders to enter long. As of right now, longs are up +120 pips of profit with more expected.

After creating a new high for the year, EURUSD has found itself in a retracement. It is at this retracement, traders can look for entries to the upside. The main focus should be on the daily closure as it will provide the indication that the price is ready to move higher or continue lower.

Tomorrow is the European Central Bank rate statement and press conference. Although rates are expected to remain the same, the tone set at the press conference will have the most effect on the markets. Traders should be cautious during this period.