Last week Gold prices closed near to its 61.8% retracement level of 1836. Ahead of the Fed week, it was a narrow movement. It has been 4 months since Gold is making a lower high and lower low. On the daily chart, precious metal prices are being stuck between 50 and 200 DMA. The market will wait for the Fed outcome, all eyes will be on the central bank’s bond buying program and considering the rising Covid-19 cases in the USA, it may expand its bond buying program.
Technically, on a weekly chart MACD and RSI both are negative and suggested further downside in the price. However, this 4 months correction in the price, has not breached the overall long term bullish trend of the Gold. On a daily chart, first support is at 1822 level below that it might break 1800. Any decisive break below its yearly 50% Fibonacci retracement level of 1761 may trigger the further downside to upto 1686. On the higher side as long as it holds 1833 level it may touch its 78.6% Fibonacci retracement level of 1944.
EUR/USD daily chart shows resistance of 1.21 level (78.6 retracement level) followed by resistance on the RSI. Further upside will depend on the Fed outcome. Also Service and Manufacturing PMI will play a crucial role for the pair for further breakout above 1.21 level.
Prices might trade between 1.21 to 1.2185 on the higher side, any breakout above 1.22 level will open the door to cross its 5 year high above 1.25.
While on the downside, 1.18 is the strong support which is also 61.8% retracement level. Any break below 1.18, may trigger the price to fall down to 1.16 level.
Currency pair Pound/Dollar (GBP/USD), closed last week near the 1.32 level. On a weekly chart, prices are trading in a Bearish Wolfe Wave pattern. Even though it's a downward channel, chances of prices to break its upside range is high. All major moving averages like 50, 100 and 200 DMA have squeezed onto the weekly chart, which suggests that the next breakout will be major. Among the important data and events for GBP/USD is the development of Brexit, UK retail sales data and BoE rate decision in the coming days.
Technically, the first important support is at 1.29 below that 1.27 is the major support. Interestingly, 50 DMA, 100 DMA and 23.6% Fibo retracement level all fall at the 1.27 level area. Cable always attracts the swing traders, considering that 1.27 could be a good entry level to go long for a target of 1.36 and 1.42.
The contents of this article do not constitute trading advice and should be treated as general information only.
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