Key Economic Data - Coming Up Today (All Times GMT+3)
The EURUSD retreated below the FOMC low of 1.2550 to reach 1.2540. Overnight Japan announced an expansion to its Quantitative Easing program. The USDJPY rose from 109.40 to 111.40 on the stimulus package announced by the Bank of Japan. The EURUSD slumped from the 1.2600 level making a new weekly low. The price is just above 1.2500 which is a 2-year low. The GBPUSD and AUDUSD have not suffered an analogous decline as seen the EUR and the JPY. The technical picture for the EURUSD is weak, as seen on the H1, the blue rising trendline for the pair has been broken in devastating fashion. This ends the hopes for the EURUSD targeting a move beyond 1.2890 and within range of the key 1.30 level. Yesterday the strong US Advance GDP helped to strengthen the attractiveness of the Dollar.
At present the Euro is under pressure with the pair below 1.30 and still trading below the downtrend channel as seen in the H4. As long as the pair remains below 1.30 and below the downtrend channel, the bias remains bearish. - This has been our consistent outlook for two month now, although the picture had become more mixed as the pair had re-entered the lower end of the downtrend channel as seen in the H4 Chart. Overall the bias is sill negative for the EURUSD although there is slightly more hope for the bulls now due to the price action of the last three weeks. The pair had recently begun to re-enter into the lower end of the downtrend channel. The price has now collapsed and signaled this latest attempt to rebound in the EURUSD as a failure.
EURUSD Support areas include 1.2500, 1.2475, 1.2425, 1.2300. Resistance levels above are at 1.2600, 1.2700, 1.2845, 1.2800, 1.2900,1.30 figure level, followed by 1.3165.
EURUSD 1 Hour Chart
EURUSD 4 Hour Chart
Pivot Point Table
Gold fell sharply from $1200 an ounce to $1166 in a sudden 3% decline following US Dollar strength and the announcement of the Japanese CB expansion of the stimulus package to the domestic economy. The price has since rebounded to trade at $1176. Gold has lost $90 in value since just last week, amounting to a depreciation of roughly 8% in a matter of days. This latest decline has ended the possibility of a strong triple bottom at $1180 which could have served a s a springboard higher. Instead now the breach below $1180 in particular changes the technical tone to a very negative bearish outlook. The price action strongly favors further declines in the long term although Gold has already declined from $1921 to $1166 making some upward corrections quite possible.
Coming up today the Eurozone CPI will impact the Gold trade as well as the Eurozone Unemployment Rate Report. In addition Canadian GDP is also on the schedule followed by Personal Income and Personal Spending in the US.
Support levels for Gold can be seen at $1170, $1155, $1145, $1130. Resistance to the upside materializes at $1185, $1195, $1205, $1215, $1225, $1235, $1240.
Gold Hourly Chart
Gold 4 Hour Chart
Gold Pivot Table