Gold finds resistance beneath 1328 but bias remains bullish

ASIA ROUNDUP:

• As the situation win Ukraine intensifies money has continued to flow into safe havens such as Gold and JPY, however XAUJPY is also going up making the yellow metal the clear winner of the safe havens during Asian trading.

• Relatively quiet across FX as markets await London open.

• The Euro gapped down following Draghi's comments at G20 minutes and the gap is yet to be closed.

• AUDUSD range trades beneath 0.940 and within Friday's Hanging Man Candle;

• Cable retraced some of Friday;s losses but looks bearish below 1.675 resistance

• USDCAD came close to testing 1.10 resistance but may favour bearish setups below this key level. US Retails sales tonight should be the catalyst to respect or break this level.

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TECHNICAL ANALYSIS:

GOLD: Finds resistance beneath 1328 but bias remains bullish

Gold continues to gain strength and already tested $1328 resistance just after Asia open. Within a clear bullish trend and well defined cycles the bias for continued gains is pretty clear.

If $1328 holds as resistance then buying opportunities above $1320 should be considered.

​Only a break below the lower bullish channel and / or the $1314 swing low invalidates the bullish bias on the H4 and D1 charts.

NZDJPY: Potential for pivotal low above 87.60

The previous analysis called for a return to the bullish trend following the Bullish Engulfing candle 3 trading session ago (comparing the open and close to the previous open and close). Whilst the trade started out well, sadly it did not maintain the bullish stance to break through the support zone and drop down to 87.60.

However this low is now part of a Bullish Hammer which has formed above a revised support zone, comprising of the Monthly Pivot and horizontal S/R.

Overall I am an NZD bull due to the positive sentiment, fundamental outlook and suspected rate increases this year. All that is required now is for Yen's 'safe haven' status it has enjoyed this part week and a half and I believe we will see our swing low.

As we are currently trading beneath the weekly pivot I suspect we will range trade within Friday's candle until a new catalyst arrives. Potential ones to look out for are NZ CPI on Wednesday, China figures, Yellen speech on Thursday (USD strength/weakness), and the Ukraine at any moment.