Gold resumes recovery, double-bottom underpins

Slobodan Drvenica Windsor Brokers

GOLD

Spot gold rose to the highest in more than one week on Tuesday, resuming recovery leg from $1677 (Mar 31 low) after bulls took a breather on Monday.
Fresh weakness of the dollar and US Treasury yields revived metal’s appeal and lift the price.
Bulls cracked initial Fibo barrier at $1723 (23.6% of $1959/$1676) and eye pivotal barrier at $1755 (Mar 18 high) break of which is required to generate stronger reversal signal on completion of a double-bottom on daily chart.
Momentum indicator on daily chart broke into positive territory and support the action, but recovery could lose traction if bulls fail to clear $1755 pivot that would keep near-term action in the extended range.

Res: 1745; 1755; 1760; 1775
Sup: 1730; 1722; 1718; 1705

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.