In Swissquote’s Tuesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for Gold (in USD) and USD/JPY. To view and download the entire report, click here (PDF).
GOLD (in USD): Correction in prices remains thus far mild
• Gold has thus far retraced slightly more than 38.2% of its 1st December rise. The current test of the short-term declining trendline suggests a persistent buying interest. Hourly supports now lie at 1186 and 1170 (intraday low). Resistances can be found at 1221 (01/12/2014 high) and 1236 (28/10/2014 high, see also the declining trendline).
• In the long-term, the move below the strong support at 1181 (28/06/2013 low) confirms the underlying downtrend and opens the way for further declines towards the strong support at 1027 (28/10/2009 low). A break of the strong resistance at 1255 (21/10/2014 high) is needed to invalidate this bearish outlook.
USD/JPY: Increasing selling pressures
• USD/JPY continues to decline after yesterday’s weakness, suggesting increasing selling pressures. Hourly supports can be found at 119.34 (04/12/2014 low, see also the short-term rising trendline) and 118.98 (previous resistance). Hourly resistance now stand at 121.00 (intraday high) and 121.85.
• A long-term bullish bias is favoured as long as the key support 110.09 (01/10/2014 high) holds. Given the psychological threshold at 120.00 (see also the 61.8% retracement of the 1998-2011 decline), the major resistance at 124.14 (22/06/2007 high) and the overextended rise, the odds to see a medium-term consolidation phase are elevated. However, there is no sign to suggest the end of the long-term bullish trend.
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