Gold emerges above 1800

JFD Team JFD

XAU/USD traded higher on Wednesday, breaking above yesterday’s high of around 1797 and surpassing the 1800 mark for the first time since November 2011. Overall, the precious metal continues to trade above the upside support line taken from the low of June 5^th, as well as above all three of our moving averages on the 4-hour chart. This, combined with the move above 1800 paints a positive near-term picture, in our view.

We believe that the break above 1800 may have encouraged more bulls to join the action, something that may lead to a test of the 1817 zone, which is marked as a resistance by the high of September 21^st 2011. Buyers may decide to take a break after hitting that zone, thereby allowing a retreat. However, as long as the yellow metal would continue to trade above the aforementioned upside line, we would consider the setback as a corrective move before the next positive leg. Another leg north may drive the action above the 1817 area and perhaps aim for the peak of September 19^th, 2011, at around 1828.

Shifting attention to our short-term oscillators we see that the RSI has just poked its nose above its 70 line, while the MACD lies above both its zero and trigger lines, pointing up. Both indicators detect strong upside speed and corroborate our view for more upside extensions in the short run.

In order to start examining the bearish case, we would like to see a dip below 1770, a support defined by Monday’s low. Such a move may encourage the bears to dive towards last Friday’s low, at 1758, the break of which may see scope for more downside extensions, perhaps towards the low of June 26^th, at 1747.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.