Two reasons to buy XAU/USD

29 June, 2015

XAU/USD:

This week we shall expect development of an ascending tendency. The past weekend, Greece was not able to settle with its creditors which puts risks in Euro zone to the very high level. In periods of instability, precious metal is of a high demand. Secondly, the past week, yield of US 10 years' treasuries grew by 19 p. to the level 2.47%. It indicates increased expectations of inflation and is positive for Gold. So, this week we should open Buy of decline of quotations to the area 1172/1162 and take profit on the point 1190.

XPT/USD and XPD/USD:

Bulls are expected to dominate this week. Firstly, US labor market demonstrate ascending yet moderate trend which points at a sustainable demand and is positive for both metals. Secondly, strong reports on manufacturing and non-manufacturing PMI of leading European states also proves recovery of the European economics. It will contribute to growth of quotations of industrial metals.

Copper was the first to respond to this and by the end of the week it added 2.37%. Now it is turn of Platinum and Palladium to reach higher goals.

So, in the middle of the week we should open Buy trades on XPT/USD using decline of quotations to the area 1077/1060 and take profit on the point 1100 and Buy on XPD/USD using decline of quotations to the area 673/663 and take profit on the point 699.

S&P500:

This week bears are expected to rule. The past week, investors expected a positive outcome of a Greek crisis but parties did not manage to come to an accommodation. Long positions can be closed and sales may go on. Investors will leave risky assets (stock market) and switch to safe assets (gold and Japanese Yen). We cannot come by dynamics of a bond market. The last week , 2 years' treasuries grew up to 0.715%. It means that investors still expect that this Fall FRS will raise interest rate. This is a negative factor for the stock market. So, this week we should open Sellpositions on growth of quotations to the area 2105/2115 and take profit on the point 2083.


Source link  
Range 1.5586-1.5651

Daily chart: the pair continues to be a wide flat range within the envelope Bollinger (1.5417-1.5711). Expectations: touching zone 1.5586 and rising to 1.5651...

We do not expect much volatility today

The daily chart: it is likely that flat status of ADX forecast to the Pound the day with a low volatility. We expect a calm trading around the middle Bollinger band (1.56)...

Flat day

Daily chart flat state of ADX and Bollinger envelopes say that the pair will spend the day (and the nearest time) within the present range: the upper envelope (123.39-125.17)...


Target is at 125.17

Daily chart: the upper Bollinger band rose even higher - at 125.17 and now this mark is an actual target for growth. So, we wait for growth to 125.17, but in the area of 124.47 we can probably meet turbulence and a possible rollback...

We shall buy to 125.09

Daily chart: the pair has predictably broken Inside bar up and now is moving to the upper Bollinger band (125.09) (125.09)...

Looking for short signals from resistance 1.1140 or 1.1224

Daily chart: the Euro preserves a growing tendency and continues to rise to the upper Bollinger band (1.1224), which, given the state of ADX, is likely to be corrected downwards to the middle band (1.10)...


Weekly review: gold, S&P500, Brent oil

Monthly chart: scenario of reversal is justifying itself. Northern marks are still achievable, but the bullish momentum has depleted to a notable extent...

Support is possible around 1.0789

Daily chart: Euro is still forced down. Currently the target is 1.0789 (the bottom Bollinger band). Somewhere you meet a significant support for a correction and as a result new sales area to move on trend...

Weekly review of S&P500 index, oil and gold

Monthly chart: bulls bolted off to work on the upper Bollinger band (2190.6), but ADX is persistent in its decline, so we are waiting for a downward reversal...

  


Share: