GOLD

Gold continues to show high volatility throughout the last week. After breaking $1820 level last week, it managed to recover to the $1896 level. Ongoing pandemic and fresh lockdown in the UK is boosting the yellow metal to cross its psychological level of $1900.

For the week, Gold might try to reach out near to $1950 level. Even though it is trading in a structured bull run, fresh upside is possible only if the prices manage to cross $1957 level. If it manages to cross the $1957 level, the next target would be $2010 and $2050.

While on the downside, any move below $1868 might drag the prices back to $1830 level.

FOREX

GBP/USD

Cable posted more than 2% upside move last week, that was more than 400 pips move in a week. Mixed unemployment numbers, wage growth and hope of progress in Brexit talks helped the pair GBP/USD to touch its 38.2% Fibonacci retracement level of 1.36.

However, Monday morning the pair slid down on rising concern of a new strain of Virus and over the many European countries announced border closing with the UK. Also ongoing negotiations of Brexit is one of the reasons for higher volatility for the pair.

Technically, any correction in the price will be a buying opportunity. On the downside the first major support is at 1.29600 and below that 1.28. On the upside once it crosses the 1.36 level, GBP/USD will try to reach its next target of 1.42 (50% Fibonacci retracement) level.

EUR/USD

For the last month of the year, EUR/USD has moved close to 3% on the upside. Weak USD helped EUR/USD to cross 78.6% fibonacci retracement level. After such a big move, the pair might consolidate or correct for the coming few weeks.

Previous resistance of 1.21 will act as strong support for this week. Below 1.21 next important support is at 1.18

While on the higher side 1.25 will be the next target for the pair, if USD continues to slide down. Due to year end closing, for this week there is not any key data which is going to be announced.

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The contents of this article do not constitute trading advice and should be treated as general information only.

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