Good morning traders,
Well, I use the word good in the loosest sense of the word after North Korea launched a ballistic missile this morning that flew over the northern Japanese island of Hokkaido.
With markets just starting to ignore the current NK regime, they certainly took notice again today with Japan forced to issue take cover notices to their citizens in what is being described as the most brazen provocation under Kim Jong Un’s five-year-long rule.
Trump talked the talk and it looks like Un has essentially tried to call his bluff. Where we go from here, I’m not sure but markets aren’t just taking this as routine, as you can see by the price of Gold going gangbusters on the charts below.
First up, let’s take a look at the significant weekly level that is now into the rear-view mirror:
Taking a step down into the daily charts, if you remember from last week, we were watching gold hugging a daily trend line that you can see in that link. I’ve removed the line because price didn’t break down and now all that matters is the fact that it’s above this horizontal level:
Is this the scenario that you’re looking for?
Your move Trump… Your move…
Best of probabilities to you.
Dane Williams – @VantageFX
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Source: Vantage FX Blog