Gold Correction In Play
The yellow metal dropped after the morning gap and reached new lows. The rate is almost to reach a first downside target, where he may find temporary support again. Is located at $1275 per ounce as has squeezed a little in the last hours. Gold dropped as the USDX has forced to climb much higher on the short term. The dollar index stands much above the 93.81 static resistance, but we’ll see in the upcoming days if this will be a valid breakout.
Technically, the USDX is somehow expected to climb much higher on the short term after the failure to reach and retest the 92.49 static support. The Gold drops as the dollar received a helping hand from the United States data. Personally, I believe that the USDX still needs a boost from the fundamental factors to be able to stabilize above the 93.81 level because technically is located below several resistance levels again.
Gold dropped further after the breakdown below the 50% retracement level and now is almost to hit the sliding parallel line (SL) of the major ascending pitchfork. Technically, it should breakdown through the sliding line (SL) after the retest of the WL1. Is on a declining path, could move downwards between the WL1 and the 150% Fibonacci line. A valid breakdown below the SL will signal a larger drop in the upcoming weeks.
Brent Oil Break or Bounce?
Brent has managed to recover in the Friday’s trading session and closed the week above the median line (ML) of the major ascending pitchfork and above the 57.72 static resistance. The rate decreased today and retested the mentioned support levels, so only a valid breakdown below the Ml will announce a further drop in the upcoming period. An increase will be confirmed by a breakout above the upper median line (ml) of the minor descending pitchfork.
EUR/GBP On The Way Down
The EUR/GBP opened with a gap down today and dropped further. Technically, it should drop much below the 0.8900 psychological level, we have an important downside target at the 0.8813. Support can be found at the third warning line (wl3) as well. Should drop much deeper after the several false breakouts above the ML, the major downside target will be at the LML.
By Olimpiu Tuns – Market Analyst
I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.
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