TECHNICAL ANALYSIS – GOLD BULLISH AS IT ENTERS THE CLOUD; RECORDS 2-MONTH HIGH

TECHNICAL ANALYSIS – GOLD BULLISH AS IT ENTERS THE CLOUD; RECORDS 2-MONTH HIGH

TECHNICAL ANALYSIS – GOLD BULLISH AS IT ENTERS THE CLOUD; RECORDS 2-MONTH HIGH

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Gold is posting some gains during today’s session so far, at one point rising above 1219 recording a 2-month high. Should it close higher, it will mark the 10th trading day of gains out of the last 11.

Delving into the Ichimoku analysis, the Tenkan-sen line (red) has crossed above the Kijun-sen (blue) in the beginning of January. This alignment is a bullish short-term signal. The bullish short-term momentum is reinforced by the RSI indicator which is at 66, well above the 50 threshold that separates bullish from bearish market sentiment (note though that it is fairly close to the 70 overbought level).

Continuing with the Ichimoku, prices have recently entered the cloud. Should they exit it from above, we would expect a continuation of the uptrend. However, if they exit it from below, a change in momentum is to be expected.

The 1220 key-level is likely to provide some resistance to upside moves. Should the price close above this level, the cloud top at around 1230 will come into view as another resistance point.

On the downside, the cloud bottom which coincides with the 1200 psychological level is expected to act as support (this is roughly the level of the Tenkan-sen line as well). Should this mark be challenged, it will bring into scope the 50-day moving average (MA) at 1178.05 as another important support point.

Looking at the bigger picture, despite a bearish cross being recorded in November with the 50-day MA moving below the 200-day one, price action since then has challenged the strength of this signal setting a more neutral medium-term outlook.

AUDUSD flirting with 2-month lows

AUDUSD flirting with 2-month lows

AUDUSD flirting with 2-month lows

AUD-USD

  • Buz Investors  flirting with 2-month lows The pair is trading at 0.7468 at 10:40 GMT this morning, with the Australian Dollar trading 0.08% lower against US Dollar from the New York close.
  • Overnight data revealed that, Australia’s seasonally adjusted unemployment rate remained steady at 5.6% in October. This morning, the pair traded at a high of 0.7502 and a low of 0.7454.
  • The Australian Dollar traded 0.13% higher against the US Dollar in the New York session yesterday, with the pair closing the session at 0.7474. The pair is expected to its find support at 0.7447 and its first resistance at 0.7495.

 flirting with 2-month lows

AUDUSD flirting with 2-month lows

flirting with 2-month lows  Having faced rejection at 0.7500 psychological mark, the AUD/USD pair maintained its offered tone and has now dropped to a fresh two-month low.

Currently trading around 0.7460-65 region, the lowest level since mid-September, the pair failed to benefit from a broad based greenback retracement and built on Wednesday’s break-down below the very important 200-day SMA support. Today’s release of Australian jobs report provided little respite and the major extended its near-term weakening trend amid continuous slide in commodity prices, especially Copper, which is weighing on the commodity-linked currency – Aussie.

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flirting with 2-month lows

Moreover, with market participants already pricing-in a very high probability for an imminent Fed rate-hike action in December, investment flows are moving away from higher-yielding currencies and is further exerting selling pressure around the major.

Next on tap would be US macro releases that include – CPI, housing data (building permits and housing starts) and Philly Fed Manufacturing Index. Market participants will also pay attention to the Fed Chair Janet Yellen’s testimony, which if reinforces market expectations of Dec