The recent rally in gold saw price retesting the 1350 – 1355 resistance level, which could now signal a near term dip to 1327.50 on a bearish continuation. The further downside can be seen only on a breakdown below this short-term support level, for a move to 1315 – 1300. GBPUSD gave back the gains yesterday closing back above 1.30 handle, but there is a possibility for the price to rally back to 1.32 in the near term.
EURUSD Daily Analysis
EURUSD (1.116): EURUSD posted a third day straight of gain yesterday, but price action was short of 1.120. Further upside is seen only on a daily close above 1.120, in which case EURUSD could be eyeing for 1.130. However, it is quite likely to expect the price to remain range bound within the current levels with the possibility of a dip back to 1.110. On the 4-hour chart, EURUSD is seen trading within the rising median line and resistance at 1.1240 - 1.120 remains a key level of interest, which could see further upside is EURUSD manages to clear the resistance.
USDJPY Daily Analysis
USDJPY (101.42): USDJPY slipped below 102 support and remains trading within the 101 - 102 support level. A breakdown of prices below 101 could signal further weakness in USDJPY which could see prices test the next low at 100. To the upside, a close above 102 is essential for prices to rally towards 104. On the 4-hour chart, following the hidden bearish divergence, we can expect prices to move higher with the Stochastics posting a higher low, compared to the lows formed near the 104 level, subject to USDJPY clearing the resistance near 102 - 101.42.
GBPUSD Daily Analysis
GBPUSD (1.300): GBPUSD failed to keep up its gains with prices falling back to 1.30 support. The falling wedge pattern remains in play and with prices currently consolidating near 1.30, we could expect to see GBPUSD potentially retrace the declines to retest 1.320 on a break out to the upside. A close below 1.30 and below August 9th lows of 1.2956 could invalidate the bullish view and pave the way for GBPUSD declines to 1.280.
Gold Daily Analysis
XAUUSD (1342.79): Gold prices rallied to the 1347.20 level and posted a high near 1357.32. A bearish close today below yesterday's lows of 1340.20 could signal further declines to the downside. Support is seen near 1315 - 1300. On the 4-hour chart, the retracement seen over the past few days marks a retest of the breakout near 1355 - 1350 levels. Thus a continuation to the downside is quite likely. Watch for short-term support at 1327.50 followed by 1300 if the support breaks down.