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GLD reversed and firmly broke the resistance at 1205. The session ended at 1211. This is a strong reversal price action and the recovery is likely to continue after some retracement. I entered long pending limit at 1200. Stops are set at 1180 and take profits are open for now.
DXY stopped at 20 ma and pushed higher in today’s dealing. The upside is capped to 96.50 and this rally might prove to be right shoulder of H&S pattern. My bias is to the downside and any rallies will be sold with targets at the fresh lows below 93.50
DXY plunged and closed the day at 95.00 mark, which is the recent important resistance. I expect the price to move lower from here. The lower low is still needed to confirm the bearish bias. Once in place, the pullback up to 95.00 will be great spot to short DXY with targets at 92.60
The cable broke below an important 1.2960 support and closed below it. This signals more downside to come. Rallies are likely to be capped at 1.3060 resistance. This is a good level to enter shorts with targets at the new lows below 1.2950. Stops should be placed at 1.3230
DXY pushed towards the resistance once again. This is 5th time the index is testing 95.00. This level had proven to hold well the last few times. It is likely to hold once again. Rallies should be sold. A firm closed above 95.30 will suggest DXY has more room to the upside. Stops at 95.30, targets at 94.00, 93.50
On Tuesday, the AUD / USD rose 15 points to the level of 0.7418, with growth observed for the third day in a row. Support for the Australian dollar was provided by positive macro statistics published on Tuesday morning from the Australian housing market. The number of permits for housing construction in Australia in June was + 6.4% (+ 1.6% in annual terms).
USDJPY recorded 5th day trading below 20 days moving average. At this stage this market is very bearish and given the speculative position about to collapse down. Pending short orders can be placed just below the recent low at 110.75. There is no clear level to take the stop at so place initially 120 pips. Targets at 108.25.
Draghi collapsed EURUSD. The pair traded sharply down and closed at 1.1640, 100 pips lower from the opening price. The downside is, in my opinion only a leg down towards the support at 1.1530 and it will be another move in the range between 1.1530 and 1.1800. The range is likely to continue for another 4-6 weeks. Buy supports and sell resistance is a preferable strategy in the range bound price action.
According to the forecast, this week’s the consumer price index (CPI) is expected to grow up to + 0.5% in the second quarter (previous value + 0.4%), which should have a short-term positive impact on AUD. Nevertheless, inflation, despite its relative growth, remains low, and unemployment is relatively high. The data expected on Wednesday will once again confirm the view that interest rates should remain at the current level for the time being.
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