EUR/USD, GBP/USD, Gold and Silver outlook is negative for the start of this week [Video]

Jason Sen DayTradeIdeas.co.uk

XAU/USD

Gold reached quite strong trend line resistance at 4185/4190 and made a high for the day halfway to the next trend line resistance of 4210/4220.

The shorts worked on the slide to the first target of 4170/4165, with a low for the pullback at 4156.

Despite the volatility and initial heavy decline from Monday to Wednesday, Gold only closed down $20 on Friday, from Sunday's open.

Which means we've still barely moved in this erratic, random sideways consolidation since the 29th of September.

While I am waiting for a breakout and hopefully the start of a trend (even if it's only short term) we are still finding profitable trades.

We also know when to stay out of the market and be patient, when there are no opportunities, like we did on Thursday.

I have a more negative bias at the start of this week and so a break below 4150 can target 4130, perhaps as far as 4110.

We could even see 4100 and I would not rule out a retest of last week's low and the October low at 4075 /4065.

We do have strong support at 4075/4065 and longs need to stop below 4055.

The only sell level I have for you today is at resistance of 4210/4220.

Author

Jason Sen

DayTradeIdeas.co.uk

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.

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