Watch the bullish pennant pattern in Gold

June 22, 2016

Gold prices might be looking weaker on the daily and weekly time frame, but the 4-hour chart shows a bullish pennant pattern which could signal further upside in gold. With the UK referendum vote due in less than a day, gold prices could remain in a range with the likelihood of a move in either direction. $1250 remains the key support which needs to be broken to establish the downside bias in gold, while above $1300, gold prices could see further gains in store.

EURUSD Daily Analysis

EURUSD (1.126): EURUSD has closed two consecutive days on a bearish note with the price action in the form of a shooting star. The 1.130 level is clearly acting as resistance and could see prices capped to the downside. On the 4-hour chart, as expected, EURUSD fell back to the lower support near 1.1246 - 1.1234 support with the most recent price action forming a doji followed by a bullish close later on. This could indicate a near-term ranging price action between 1.138 and 1.125 levels.

USDJPY Daily Analysis

USDJPY (104.5): USDJPY managed to close on a bullish note yesterday and also formed an outside bar on the daily chart. With the range of 105.06 and 103.58 being established, further price action is likely to be determined on a breakout above or below this range. Support near 104.5 and 104.0 will be likely to hold out for the near term while 106.538 remains a key resistance level of interest in USDJPY, which could be targeted on a close above 105.06 levels. Below 103.58, USDJPY risks moving lower towards the 103 round number support.

GBPUSD Daily Analysis

GBPUSD (1.468): GBPUSD remains range bound within 1.4743, and 1.4635 on the daily chart and the volatility is only likely to pick up from here on. On the 4-hour chart, GBPUSD remains well supported above the minor resistance at 1.466 - 1.464 which is now acting as support and could keep prices poised for further upside towards 1.485. To the downside, a break below 1.464 could trigger sharp declines down to 1.446 and 1.4445 with the risk of a leg lower towards 1.435 where the Monday's up gap remains unfilled.

Gold Daily Analysis

XAUUSD (1268.95): Gold prices posted sharp declines yesterday with the 1291 resistance keeping a lid on the rallies. To the downside, the next main support is seen near the 1250 round number support. With gold prices clearing below the 1273 minor support level further declines are likely. Alternately, to the upside, resistance near 1290 could be tested in the near term and above $1300 the gains are limited unless gold prices establish support here. There is also a scope for a possible bullish rally with the 4-hour chart showing a bullish pennant pattern which, if validated could see further upside in gold if prices clear above the 1307 resistance high formed last week.

Publication source
Orbex information  Orbex reviews

October 21, 2016
Gold prices drop in Asia amid stronger greenback
On Friday, gold dropped during Asia trade amid a strengthening greenback as well as surging chances of a rate hike weighing on the hedge commodity...
October 21, 2016
ECB holds the rate unchanged with the pressure on Draghi
After a brief upturn seen in the late Asian trading, the currency retreats to the Wednesday close showing a tepid response to the ECB policy update. The New York FED leader William Dudley comments offered a support to the Dollar rally although the focus remained on the US inflation...
October 21, 2016
EURGBP Tests Major Support
This morning we saw the release of German PPI YoY and MoM figures for September. The former fell to -1.4%, compared to expectations of -1.2%. The latter was -0.2%, in line with expectations...

Vantage FX Rating
FXCM Rating
Orbex Rating
FXTM Rating
FIBO Group Rating
FBS Rating

OptionFair Rating
Anyoption Rating
Beeoptions Rating
OptionRally Rating
OptionBit Rating
24option Rating