Pair's repeated failure to stay below 1.2775 (Dec 6 high) despite the retreat from 1.2903 (last week's high) coupled with overstretched 5-DMA and 10-DMA suggests the sideways action is likely to continue. The pair is waiting for the short-term averages to catch up with the price action before extending the rally. Only a daily close below 1.2775 would prolong the...
The weak follow through post breach of the key rising trend line support suggests the bears may have run out of steam. The 4-hr candle with long tail also points to bear exhaustion. Thus, prices could catch bid and revisit $1283. A break above the descending trend line hurdle seen now at $1286 would expose $13100 levels.
A convincing break above the descending trend line and a move higher to 140.00 levels on Apr 18 followed by a base building around 139.00 levels coupled with a bullish RSI suggests potential for a rally to 141.565 (23.6% fib retracement of 195.88-124.79). On the downside, only a move back inside the falling trend line would signal bullish invalidation.
Gold’s repeated rebound from sub-10-DMA levels for three straight days, including today, coupled with the rising bottom formation amid upward sloping 10-DMA suggest the prices could revisit the recent high of $1295 levels. The bullish technical view goes well with the fact that the safe haven assets like gold are likely to catch a bid ahead of Sunday’s French...
Daily chart - rising bottom formation, bullish 5-DMA & 10-DMA crossover, Price and RSI has breached the declining trend line
UK consumer spending as represented by the retail sales dropped 0.5% in March, which amounts to 3.8% rise in the annualized terms. The core number is also seen dropping 0.5%, which would be bad news. Retail sales could fall more than expected- The odds of a weaker-than-expected retail sales appear high if we take into account the weakness in spending as shown by...
The retreat from the intraday high of 7134 indicates upticks are being sold into. Moreover, the early gains were largely due to the 6% rally in iron ore prices, which is nothing but a technical correction. The metal has been on a one way losing streak for quite some time now. Overall, the doors remain open for a drop to 7054 (23.6% fib and head and shoulders...
The recovery from the low of 2329 (Apr 13 low) indicates the 'slow' sell-off from the high of 1.2401 has run out of steam, nevertheless, the repeated failure to retake the rising trend line seen earlier this wee has kept the bulls on the sidelines. currently, the index is in a no man's land. We would reestablish our bearish view if the index breaks below 2300....
A bullish break from the inverse head and shoulders pattern would add credence to the repeated rebound from 108.30 area and open doors for a 'slow' rise to 109.20-109.50 levels. On the lower side, only a daily close below 108.00 would signal continuation of the larger downtrend from the 118.66 levels.
The descending trend line coming from Nay 2016 high and Aug 2016 is seen offering resistance around 1.0805. A daily close above 1.0805 is necessary as that would add credence to the rebound from the rising trend line support and open doors for a sustained move higher to 1.10-1.11 levels. On the downside, a break below 1.0709 would shift risk in favor of a...
Wednesday’s bearish engulfing/bearish outside day candle followed by a failure at 50-DMA today despite the sharp rise in the NZ CPI data if followed by a breach of psychological support at 0.70 levels would open doors for a quick fire sell-off to 0.69 handle. Only a daily close above 0.7090 (Mar 21 high) would open doors for a rally to 0.8250.
The 23.6% Fib retracement of the rally from Brexit referendum day low stands at 7054. The index has breached the head and shoulder neckline yesterday and as per the measured height method we get the downside target around 7059, which pretty much coincides with the 23.6% fib retracement level. Looks like another 70 point sell-off is a done deal
Gold’s exhaustion near $1300 levels followed by a retreat to $1277 levels today suggests a temp top has been made at $1295 (Apr 17 high), but reckon the support at $1264 (Feb 27 high) would hold, given the 5-DMA and 10-DMA are still sloping upwards. Only a daily close below $1264 would signal trend reversal. On the higher side, break above $1295-1300 would open...
The 23.6% fib retracement of the rally from the Brexit referendum day low is 7054. Note that GBP/USD has already breached the 23.6% fib retracement (1.2640) hurdle of the Brexit sell-off. Given the strong negative correlation between GBP/USD and FTSE100, it is safe to assume that the mining heavy index could slide to 7054 levels.
The higher low formation since bottoming out in October 2016 followed by a sharp rise above 1.2774 (Dec high), coupled with the breach of the downtrend on the monthly RSI suggests the rally could be extended to a stiff resistance around 1.3094 (38.2% of 1.5019-1.1905) and 1.3152 (23.6% of 1.71915-1.1905). The 5-MA on the monthly chart has bottomed out as well....
Eur’s failure at 100-DMA for the second straight session indicates the technical recovery from the low of 1.0569 has run of steam and a close today below the rising trend line would open doors for a potential cut below support at 1.0569 and extension of the retreat from 1.0906 to 1.05-1.0454 levels.
USDJPY- Next major support seen a 108.50-108.30 - Still in a bull flag formation
Despite gold’s jump above the 200-DMA, there is little room to be super bullish on the yellow metal as the descending trend line from 2011 high and 2012 high is seen offering stiff resistance around $1276 levels. Only a monthly close above $1276 would add credence to the higher lows formation and signal a major bullish reversal. Bearish scenario: - Metal’s...