$GOLD Nears Critical Support @ 74.50 | #Gold $XAU
Predictive/forecasting model is on $Gold, having defined significant R/S levels as follows:
1 - Strongest resistance within the 80.94/81.63 range
2 - Moderate support with reversal potential at 74.50
3 - Strong support with break-thru risk at 74.04
Also, model defines the following conditional targets, provided breach of 74.04:
1 - TG-1 = 69.31 - 16 MAY 14: Moderate probability of reversal if reached. Consider reversal to 74.04/74.50 range
2 - TG- = 64.64 - 16 MAY14: Moderate probability of reversal
A lower target also exists at this point, pending development of conditions defined above.
Just as the current ( ) $Copper price may relate to the financial chart of $SCCO company, the current price of the metal may impact this $Gold company.
The relevant part to Forex would play out through correlations, such that we might see a decline in the price of gold , silver and copper bearing down on commodity-tethered pairs, such as $AUD, $NZD, $CAD, and indirectly on $EURUSD. Inversely, these changes may buoy USDollar index and its Forex pairs.
Directional bias is both on basis of predictive/forecasting model and this trader's technical interpretation.
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As price approached the defined support levels, 74.04 remains the conditional R/S line defining a future price action, in the way of rallying or falling. In the case of a rally, the upside remains limited relative to the downside. This chart remains net-bearish per predictive/forecasting model.