USD WEAKENS AS MARKETS CATCH UP TO FUNDAMENTALS
The pair has found support at 1.1150 yet again and we expect this all important level to hold for the day as bulls look to test 1.1175, 1.1200 and 1.1225. On the other hand, if bears can concentrate their forces, we could see another test of 1.1150 as they look to retest last week’s low before this week’s key data with targets at 1.1125, 1.1100 and 1.1075.
Bears caused an abrupt turn around in the bullish momentum towards the end of yesterday, as they sneakily made a new low below 1.3300, officially putting the pair in consolidation as we see a bearish head and shoulder formation taking place. Should bears retake 1.3300, we would have confirmation of the new bearish trend and we would expect the pair to sell of further with target 1.3250, 1.3200 and 1.3150. However, if the pair break above 1.3375, we would see the bullish trend continue as bulls target 1.3400, 1.3450 and 1.3500
Bulls are firmly in control after having found support at 0.7575 and catapulting the pair to 0.7635 with little to no regard of interim resistance levels. As it stands bulls will be targeting 0.7650, 0.7675 and 0.7700 while bears will have their eye on 0.7625, 0.7600 and 0.7575.
Gold`s longer term trend direction is bullish but at the momentum it is faced with strong resistance at the 1325 zone, where bears are hoping to launch a new assault on 1300. A bearish capture of 1325, will see them target 1320, 1315 and 1310 while a bullish close above 1330 will see the precious metal move towards 1335, 1340 and 1345.