Swissquote Daily Technical Report: Gold – The symmetrical triangle has been broken to the downside


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.

eurgbp

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.

gold

Swissquote, a member of LeapRate’s Globally Regulated Broker List has the most advanced technology and sufficient liquidity, and its completely transparent foreign exchange trading pattern is unique, which helps ensure its customers trade with the best prices current at the time of the transaction. Swissquote’s financial and economic expert team provides its customers with high-quality technical analysis and research reports every day.

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Swissquote Daily Technical Report: Gold - The symmetrical triangle has been broken to the downside

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