GBP/USD, EURUSD and spot Gold
Thu, Apr 9 2009, 06:04 GMT
by Carol Harmer
No reports on friday or monday due to the easter break
GBP/USD
Sterling had a narrow range yesterday thus basically keeping the outlook unchanged. Currently there is a sideways motion going on, but buyers are expected soon to come looking for bargains and 1.4642/35 would be the levels that will entice buyers to show themselves.
You should see buyers push this higher then through 1.4735/50 to 1.4775/80. Sellers here will be joining profit takers so you could expect the market to pause for breath here. If however buyers manage a break above 1.4825 look for further strength to occur with 1.4915 the initial target. Buyers will once more be profit taking at these higher levels. Above 1.4915 sees fresh buyers re-enter with 1.4960/85 the short term targeted area.
Below 1.4610 negates short term strength and sellers will lead this lower for 1.4585. Short covering should occur. Below 1.4585 sees 1.4533.
EUR/USD
Buyers failed at 1.3310 yesterday and then sellers took over and pushed the market lower.. However the pattern that is forming on the hourly charts is a bullish one, thus buyers are expected to take charge today.
Any weakness to 1.3230 will be seized on by buyers trying to ramp the market higher. Sellers are expected to appear around the 1.3310/24 region. At this level a tug of war will take place, but although it may stall initially, the chart pattern is firmly on the buyers side and once 1.3324 breaks buyers will jubilantly re-in force the move higher by adding to positions looking for target of 1.3510. This is the measured target from the base formation.
However there are levels of resistance all the way to this target, so profit taking and re-instating on breaks is the way forward, bearing in mind this overall targeted area.. Only below 1.3100 negates bullish scenario and leaves sellers free to push the market lower to 1.2940/30.
SPOT GOLD
Gold sold off to 878.40 yesterday but buyers won through in the end and pushed this higher for the short term 50% fib level of 890 just shy of 891 target. Now this has eased overnight, but once more buyers are looking to defend 877.
If they lose this battle, sellers will march in, taking this lower to 874. Short covering is expected to these levels. Buyers would be looking to re-enter the market unless 874 breaks. Sellers would then grab control and lead this lower through to 864 leaving buyers stranded and gasping at higher levels. 864 should be well supported by buyers and would expect this region to hold.
890/891 remains upside resistance. Sellers are holding fast there. However if buyers manage to break through the barrier look for 896 the as your immediate attraction. Buyers will be satisfied to take profits to here and only re-invest if the resistance breaks for 900.40.
