Gold has bottomed out as a consequence to yesterday’s increasingly bearish downtrend. Only now it begins to break from its weekly low and moves upwards towards this week’s support of 1240.692, with a large gap from the resistance level at 1254.273. GOLD is expected to break back through the support area and stabilize according to pending US economic reports. Forecasted targets for resistance are 1250, and support of 1232 in the event of a positive economic report.
Early morning results of the Euro have all been highly positive, breaking through all resistance levels previously set for the day. Currently still pressing towards a new resistance of 1.3617, with both RSI readings of 49 and Stochastic levels of 65-70 holding for a steady gain throughout the day. Further known strength in the Euro market will allow for the high possibility for the price action to reach weekly resistance levels of 1.3688 before any major retraction.
The continued bearish trend supported by the AUD is seen to gain further momentum without any feasible support barrier in sight for the near future. The price action is expected to fall further to a range of 1.0500 by the end of the day. Despite rallying attempts from high volume trading as shown by stochastic levels of 80+ regularly, investors are continuing to show a bearish sentiment with the majority of downtrends appearing with higher volumes than uptrends.