Gold slided to the new lows even faster than we could expect following break of 1100/1095 noted earlier. Currently sitting on 1050/60 supporting zone. Very important supporting zone comes @ 1025-30 and mostly based on weekly closes. Decisive break below likely will let Gold to dip way below 1000 to the ~950 dollar per ounce.
Time frame for observation – daily/weekly.
Despite of the short term break daily/4H charts proved the importance of 1119-1125 region of resistance. Current price structure is a bit neutral and market is sitting on the balance point of 1100. Supporting zone located at 1095-1100. This needs to hold to keep bullish tone.
Remaining EUR/USD and GBP/USD swing trade positions closed.
Recommend others do the same. Will look to re-establish or reverse later.
Cheers
Recommending to take some forex gains off the table for GBP/USD and EUR/USD at this time. Can either take all off the table now or leave a trailing stop as this is a swing reaction trade .
A quick glance at crude oil and gold would indicate that the USD weakness from Tuesday will see a short term reaction in opposite before the next primary directional wave can be determined. Selling short GBP/USD and EUR/USD may provide a decent opportunity to capture this opportunity.
Technically gold faces important resistance at 1119 level and may atleast correct lower if not resume recent downtrend from current levels… may affect recent USD consolidation in short term.
Current level – 1113, high – 1116
Long term trend is still down in consolidation phase. However it has signs of possible correction higher with 52-week low and double bottom being in place. Level to watch to keep this structural view is 89.30. Weekly closing below puts recent lows at 84.80 to risk. Last week level of 89.30 proved its supporting strength so far. Closing week above 93.50 will confirm clear structure change to the upside.
Current major intraday pivot comes at 90.50 with next important level at 91.00.
Conclusion: going long at current levels with guidance from intraday trending tools with stops below 89.30 OR wait for the break of 90.50 with buy stop orders.
