By Anton Eljwizat – Gold is now trading nearly 11% below record highs hit earlier in the month. Gold has made a significant downward correction, which can be directly correlated with the bearish trend of the EUR/USD cross. Analysts said gold could test lows in the near term after breaking $1,100 as investors close positions before the end of the year, but their appetite to buy bullion on dips would support the market. From here on, the forex and commodity markets will see very high volatility indeed.
Pivot: 1120.00
Our Preference: SHORT positions below 1120 with 1085 & 1070 in sight.
Alternative scenario: The upside penetration of 1120 will call for 1130 & 1142.
Comment: the downside breakout of 1096 is a negative signal. Moreover, the 60 min RSI is capped by a declining trend line.
Trend: ST Bullish; MT Bullish
Key levels Comment
1142*** Horizontal resistance
1130** Horizontal resistance
1120** Intraday pivot point
1094 Last
1085** Horizontal support
1070** Horizontal support
1060*** Horizontal support
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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