EUR/USD, GBP/USD and spot Gold
Fri, Mar 27 2009, 07:05 GMT
by Carol Harmer
GBP/USD
Sellers came into Sterling yesterday, pushing the market lower to 1.4425. You have seen a small bounce from these lower levels, but overhead resistance at 1.4520 should provoke sellers once more to appear.
A loss through 1.4420 would also fuel the downside scenario and see the market coming lower for the short term 50% retracement target of 1.4335/09. Once more you will see profit taking at these lower levels. Buyers will resurface here, and it is only below 1.4300 that buyers should be worried.
If back above 1.4550 one would expect the sellers to reverse position as this will move higher with 1.4620/40 your nearby objective. Positions will be covered. Buyers would once more appear over 1.4640 for another go at 1.4775/80.
EUR/USD
Euros held up well yesterday with buyers coming in at 1.3495/90. Short term resistance is at 1.3620/40 , and would expect buyers to come in over this level to try and push the market higher for 1.3739/63.
Profit taking will occur around these levels. Buyers would be expected to resume position taking if the markets broke through 1.3800. This would clear the short term topping pattern that has been evident and lead the market higher for 1.3856/96. Profit taking will be seen. Above 1.3896 sees further strength leading to 1.3963.
Currently support is located at 1.3474/50. Buyers will reappear at these lower levels, and would only worry about their long positions if the market lost 1.3410 support.
SPOT GOLD
Gold sellers appeared just prior the 946 target and Gold then came lower to 932.16 and is currently under pressure once more.
Below 930 will see a fresh wave of sellers appear as Gold should then break lower back to excellent support located at 918/915.25. Here profit taking will occur and the tentative buyers will emerge. You should see the market bounce from these lower levels and back above 932 would see further buying pressure for the 946 resistance.
However if 914 breaks you will see a reversal of sentiment with buyers reversing their positions for this to come lower with 903/903 then targeted in the short term. Sellers will cover shorts to here, and look to re-sell if the market is below 900.40.
