On the daily chart EURUSD retreats from his October last week highs and formatting a double top formation, still not clear formation but for now it’s look like a gloomy picture for the EUR. Moreover, the false channel break and the lack of strength to trade above the channel just magnitude that we are not ready yet for significant breakout. So form technical point of view we will look for some correction to the lower range of the channel 1.3624 or even to the 50 M/A around 1.3577.
USD/JPY (4h chart) continues their battle around the 103-103.18 area and although some fundamental reasons should push the dollar up he had failed again and again and again….and as we always say “what is not going up then will probably go down”. I will expect for a small correction to the 102.27 (100 M/A) area, any oversold signal will be good opportunity to join the impulse uptrend. Do not forget, the main trend is clearly up and any breaking news for the Feb will result in a massive run to the green buck.
Gold continue his downtrend with another 2% loss during last week. During last week the bulls had tried to push the price of gold up but failed around the first Fibonacci line at 1268 and now struggling to support the market close to the TWO YEARS LOW at 1200. The RSI is very weak (RSI=39 for today) and any break of the 1200 mark will lead as to heavy liquidation.