Gold’s retreat from the high of $1375 despite bullish break from the falling channel amid overbought daily RSI indicates prices could have formed a double top formation and are heading towards $1335 levels (Friday’s low and neckline support).
On the higher side, only a day end closing above $1380 (38.2% of 2011 high – 2015 low) would suggest continuation of...
Dollar’s failure to latch on to post NFP gains led to a sharp recovery in gold from intraday low of $1334.90 to $1370.
Gold’s sharp recovery from $1334.90 if followed by a bullish break from hourly falling channel (on hourly closing basis) would suggest the minor corrective rally has ended and could yield a test of $1380 (38.2% of 2011 high-2015 low) in the...
Resistance - $1363, $1370, $1380
Support - $1357, $1350, $1340
Gold is moving in a minor falling channel on the hourly chart.
Despite gold’s retreat from the recent high of $1375 to $1350 yesterday, the overall bullish outlook remains intact; hence a bullish break from the falling channel could yield $1380 (38.2% of 2011 high – 2015 low).
On the other...
Gold clocked a high of $1371 levels in Asia and continue to trade near $1370/Oz levels, which is few points short of $1378 (point C of Cypher). The 38.2% Fibo retracement of the move from 2011 high - 2015 low stands at $1380.
Failure to take out $1378 - 1380 could trigger profit taking. A break higher on day end closing basis would open doors for a sustained move...
Gold prices in the EUR terms or XAU/EUR daily chart shows a bullish Cypher set up. Prices are on the rise again, but the momentum appears to have weakened. Hence, prices may not take out Point C in the near-term.
Assuming the point C stays intact as resistance, I raise a question whether the cypher set up is pointing a sharp weakness in Gold (XAU/USD) or EUR/USD...
Resistance - $1358, $1378-1380, $1400
Support - $1344, $1335, $1328
Pattern – Bullish break from expanding channel
Gold’s bullish break from expanding channel formation on Friday has left the doors wide open for the continuation of the rising trend from December low and a possible test of Leg D of Cypher pattern seen at $1378 levels.
However, prices failed...
Resistance - $1335.33, $1358.10, $1378
Support - $1328, $1320.67, $1310
Falling bond yields across the globe continues to support gold prices. Even the EM/Asian bond yields are taking a hit. Taiwan 10-yr government bonds declined to a record low of 0.7246% today. Japanese bond yields slipped further to record lows, especially at the short-end of the curve.
Resistance - $1320.67, $1328, $1335.33
Support - $1310, $1303, $1297.52
Gold’s rebound from the low of $1312 followed by a move above daily 5-MA has kept the doors open for a break above $1320.67 (23.6% of May low – June high).
Such a move would open doors for a test of expanding channel resistance seen at $1328 levels.
On the lower side, a break below...
Resistance - $1320.67, $1328, $1335.53
Support - $1310, $1303, $1297.52
Daily chart pattern – Expanding channel formation
Gold’s recovery from the yesterday’s low of $1310.10 if followed by a break above 5-DMA of $1318 could be an indication of the rally towards channel resistance at $1328 levels.
A day end closing above the same would signal a continuation...