Swissquote Daily Technical Report: Gold – Correction in prices remains thus far mild

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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