Gold: Watching $1180

UP NEXT:

Busy night of news with releases from Europe, US and UK.
The BoE surprised the markets by being less dovish to see Cable rebound from the multi-month low. Strong retail sales may see an extension of this move.
EURUSD has drifted to resistance and we have several key data points from the Eurozone. Any weakness here should see it firmly back below 1.60
Then over to the US for employment, inflation and manufacturing data. Plenty here to get most markets moving if we miss expectations enough, in any direction.

TECHNICAL ANALYSIS:

GOLD: Watching $1180

Whilst I suspect that Gold has formed a swing high at $1204, at time of writing I do not like how price meanders around $1108-83 and would prefer to see it below this resistance level.

That said at some stage we do need to take a punt, so we could consider shorting into any retracement within yesterday's range to assume a swing highs has been seen.

Any break above this level would favour $1108-83 becoming support and for price continue its way to the upper Bollinger Band.

EURUSD: May have seen end of the correction

For a view of D1 and further details on this trade please see yesterday's post: EURUSD drifts towards 1.60 resistance

Price has tested the 1.605 resistance zone with a spike on higher volume. This suggests there has been a 'change in hands' at these levels and raises the potential for a top to have formed.

Keep in mind that spikes in isolation do not pinpoint with accuracy a top, as it is common to see several spikes around the same area. In fact I am hoping for another attempt to break higher so I can fade into it with a tighter stop / or move my stop further buying 1.605 to (hopefully) see EURUSD return to the bearish trend.

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