By Anton Eljwizat – Gold slid to as low as $1121.30 an ounce early today, which is largely owed to the USD’s gains vs. the EUR in early trading. In the past week, Gold has made a significant downward correction, which can be directly correlated with the bearish trend of the EUR/USD cross. This recent activity has raised the stakes for traders. From here on, the forex and commodity markets will see very high volatility indeed.
Pivot: 1115.00
Our Preference: LONG positions @ 1120 with targets @ 1155 & 1165.
Alternative scenario: The downside penetration of 1115 will call for 1100 & 1070.
Comment: Price is shaping a falling wedge pattern, calling for a rebound.
Trend: ST Bullish; MT Bullish
Key levels Comment
1200** Horizontal resistance
1165** Horizontal resistance
1155** Intraday pivot point
1129 Last
1115** Horizontal support
1100** Horizontal support
1070** Horizontal support
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
