Gold price remains in a short-term bullish trend, and I continue to expect prices to move higher towards the area of $1,120-30. The trend remains bullish as the price is headed towards higher highs and higher lows.
Blue lines – bullish channel
Gold price continues to trade above the Ichimoku cloud and inside an upward sloping channel. Support is found at $1,080, while resistance is seen at $1,110. I continue to expect gold price to reach the upper channel boundary and finish its rise from $1,050.
The weekly chart continues to show that the price remains supported, and while the oversold stochastic is bouncing, we should expect the kijun-sen resistance to be tested this week if not broken upwards. Important weekly support is found at $1,080. A weekly close below this level will open the way to $950.The material has been provided by InstaForex Company –More
EUR/USD: The EUR/USD pair was able to
move downwards last week, closing just below the resistance line at 1.0800 on
Friday. There is now a Bearish Confirmation Pattern on this pair, which means
the price could begin to trend further downwards. There is a potential bearish
target at the support line of 1.0750, while the resistance line at 1.0950 is a
formidable barrier to bulls.
USD/CHF: There was an upwards movement of 150 pips on
the USD/CHF last week – something that has caused a clean bullish signal in the
market. Since the important market level of 1.0100 is being breached to the upwards successfully,
it might be logical to assume that the price would continue moving northwards. This week, bullish potential targets are at the resistance levels of 1.0200
GBP/USD: From Monday to Wednesday, GBP/USD moved
downwards by 170 pips, testing the accumulation territory of 1.4100 last week.
From that territory, the price started making some bullish effort, which might
not render the current bearish bias invalid unless the price moves above the
distribution territory of 1.4500. This would require serious attempts from bulls because the strong USD would make it difficult for this pair to rally this
USD/JPY: The USD/JPY pair tested the demand level at 116.00, and then bounced upwards by 280 pips. This poses a direct threat to the extant bearish outlook, which would eventually be rendered invalid in case the price continues going further upwards this week. The outlook for the USD is bright and therefore the USD/JPY pair might continue moving upwards.
EUR/JPY: The outlook remains bearish and
unchanged for this market, though there are mixed signals seen. It is better to stay
away from this market until there is a directional signal. There may be a
breakout, which would be influenced by the events affecting the euro.
There would be a breakout above the supply level of 129.00 or below the demand
level of 126.50 this week.
The material has been provided by InstaForex Company –More