Trader reaction to .6097 to .6236 should set the tone for the AUD/USD on Monday. We’re looking for a potential acceleration to the upside through .6236 if traders continue to dump U.S. Dollars.
It’s a particularly busy week ahead. Economic data, Brexit negotiations, and updates on the coronavirus will continue to keep the markets on edge.
On Friday, the NZD/USD closed in a position to challenge the upper level of the retracement zone at .6074. Given the momentum into the close, we’re likely to take out this level, perhaps triggering an acceleration to the upside.
The USD/JPY settled at 107.977 on Friday. This puts it slightly under the Fibonacci level at 108.008. If the Forex pair continues to move lower then look for a test of the support cluster at 106.706 to 106.450. This is the area that traders should be watching.
Today, we are writing about a pattern our research team is seeing in the Gold/Silver ratio which is correlated to the price movement of Gold. What does this mean and how can we profit from this setup?
The upper or Fibonacci level at $1610.50 stopped the selling last Wednesday and Thursday. This is the level to watch next week. Holding above it will indicate that buyers are coming in to support the market even at elevated price levels.
Over the short-run, look for the EUR/USD to strengthen on a sustained move over 1.1167, and weaken on a sustained move under 1.1066.
Gold markets shot straight up in the air during the week, reaching as high as $1700 yet again, but has also pulled back a bit from that level in order to show signs of resistance still.
As a technical analyst, I monitor support and resistance, looking for optimum reversal levels. The gold miners are in the perfect spot for a top – are they about to turn lower? I think they are.
Gold markets have plunged during the trading session on Friday, reaching down towards the $1615 level. That being said, there is a significant amount of support underneath and at this point it’s very likely we simply continue the overall consolidation.
British Prime Minister Boris Johnson has tested positive for coronavirus but will continue to lead the nation’s response to the pandemic from self-isolation.
The US dollar initially tried to rally during the week but found the downtrend line to offer a bit too much resistance, not to mention the fact that the ¥112 level has been a scene of selling pressure previously as well.
U.K. stocks were hammered on Friday bringing a three-day rally to an abrupt end as global coronavirus cases spiralled and prime minister Boris Johnson tested positive.
The British pound initially pulled back during the week but found enough support at the 1.15 level to cause a significant bounce. At this point, the market is trying to wipe out the losses from the previous week.
The British pound has rallied during the week, bouncing from the candlestick that had been so negative during the previous week. The ¥130 level seems to be holding as support so far.
The Euro slammed into the 1.10 level during the week, showing signs of exhaustion in that region. Ultimately, it looks as if the market is still going to respect to some of the same levels again.
The Australian dollar initially tried to pull back during the week but then broke above the 0.60 level. During the day on Friday though, we started to see weakness creep back into this pair, showing just how tentative rallies are going to be.
Gold prices dipped Friday, but still ended with their best week in almost 12 years after investors cashed in on part of the yellow metal’s supercharged gains on the back of the gigantic U.S. fiscal response to the coronavirus crisis. Gold was also pressured somewhat by the dollar’s first rebound this week after the passage of the $2 trillion Covid-19 stimulus package in the House of Representatives. Gold futures for April delivery on New York’s COMEX settled down $26.20, or 1.6%, at $1,625 per ounce.
The US dollar has pulled back against the Japanese yen against the overall uptrend that we have recently seen. Quite frankly, I believe at this point it’s likely that we are going to continue to see a lot of back and forth trading.
The British pound went back and forth during the trading session on Friday as the market seem to have run into a bit of resistance. If you’ve been following my analysis, you know that I had suggested that the 1.2250 level would cause a few headaches.