(Brad Alexander – FX Large Limited)
Have you seen the fall in the price of Gold?
I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at GBPUSD, EURUSD, the DAX (DE40), WTI (USOil), and Gold (XAUUSD).
Gold has been falling since the middle of August and has reached a key level of support.
The bear run may not continue until price action breaks support and the Stochastic Oscillator turns down.
If we move out to the daily chart, we see a different picture where the Stochastic Oscillator is Oversold but don’t be fooled.
We can see similar situations where the bear run continued so, be patient.
We promised to look at WTI from the technical side today and we see that price action has bounced off this upper trend line in this bearish run.
Also, the Stochastic Oscillator is Overbought so we will wait for a downturn before selling.
During the last few weeks we were watching a rising wedge on the DAX and the bearish pattern turned out to be correct.
Price action has fallen to this previous key level but this is more of a fundamental story with uncertainty over the German economy.
The big story in the forex markets today is the fall of EURUSD which has broken parity and is now in the low $0.99 region.
We have to look at the monthly chart to see price action this low from 20 years ago.
Our strong/weak analysis has the USD as the stronger currency today and GBP as the weakest overall.
EUR/USD: Euro looking for supports
(Vasilis Tsaprounis – TopFX)
The common European currency was at new lows approaching the levels of 0.9900. Having broken down the previous lows of 0.9950 the night before, it is trying to find some support.
The pair maintained the bearish momentum and without some fresh news broke the critical support level of the previous low at 0,9950 and moved even lower.
Some today’s news on the course of manufacturing activity in eurozone and in German economy which did show some contraction but were within the bounds of expectations with some of them slightly better, they held back the further decline and was cause for a correction from 0,9900 to 0.9950 but we cannot consider that are enough strong to change the dynamics at this time.
With interest, are expected later in the day an announcement about the corresponding course of the manufacturing and service sector in the US economy, so it could be followed by new pressure for the pair or act as a trigger for a competent correction, approaching the level of 1/1 again.
Nevertheless, the low levels at which the pair is located create the scope for corrections, which we expect.
The pair securing lower levels is vulnerable to lower prices, which have an increased probability, but we are looking for support levels for euro with the aim of corrections in the short term and placing strategic medium to long terms positions in favor to euro with the aim prices again above the parity.
