Gold Analysis / EURUSD Analysis
Here are two of the scenarios we will be watching heading into the new week.
XAUUSD has rebounded from recent range lows. A breakout above Fridays high could see a confirmation of the bullish outside day. It should be noted that any move to the upside is a retracement of the bearish enfulfing candle seen on the 29/2/2012 which was a huge day for gold bears as the precious metal dropped 4.8% during the London fix. Price action on XAUUSD has played out nicely recently and the the inside day breakouts worked out well.
EURUSD has broken the ascending trend line as can be seen on the daily chart below. Price is below the 20 day SMA and a sustained move lower would potentially see a confirmation of the bearish price action. Risk trends still point towards further downside but the market is still heavily net short with the EURFX (CME) little changed according to recent COT data. Any positive euro-zone data could see further short covering.
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