In Swissquote’sWednesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for EUR/GBP and Gold. To view and download the entire report, click here (PDF).
EUR/GBP: Bouncing sharply
• EUR/GBP surged higher yesterday. The resistance at 0.7970 (20/08/2014 low) has been
breached, but the resistance implied by the declining trendline (see also the 61.8% retracement) has held thus far. An hourly support can now be found at 0.7936 (50% retracement of the current bounce).
• In the longer term, the break of the key support area between 0.8082 (01/01/2013 low) and 0.8065 (05/06/2014 low) opens the way for a full retracement of the rise that started at 0.7755 (23/07/2012 low). Another strong support stands at 0.7694 (20/10/2008 low). A break of the resistance at 0.8034 (25/06/2014 high) is needed to suggest some exhaustion in the medium-term selling pressures.
Gold (in USD): The symmetrical triangle has been broken to the downside
• Gold has broken the support implied by its recent low at 1273 (21/08/2014 low, see also the
symmetrical triangle). An hourly support lies at 1258 (17/06/2014 low), while a more significant support stands at 1240. Hourly resistances can be found at 1280 (27/08/2014 low) and 1297 (28/08/2014 high).
• In the long-term, we are sceptical that the horizontal range between the strong support at 1181 (28/06/2013 low) and the major resistance at 1434 (30/08/2013 high) is a long-term bullish reversal pattern. As a result, a decline towards the low of this range is eventually favoured. The recent break to the downside out of the symmetrical triangle confirms this scenario.
