GOLD BEARS GO WILD, GAINING 45 USD IN A DAY
As if though by magnetic force, the pair is back at 50% fibo as bulls made a late afternoon comeback to finish the day relatively flat. The downside bias is still in place with the pair failing to close above 1.1250, implying further downside should bears manage to capture 1.1200 with support at 1.1175, 1.1150 and 1.1125. However, should bulls manage to close above the 50% fibo we will likely see bulls band together for an attempt on 1.1250 which would open the way for 1.1275, 1.1300 and 1.1325.
Cable bears are on a rampage as they make short work of 1.2750 and now 1.2700. With the Brexit low of 1.27968 broken it seems that bulls have evacuated the building and are waiting for signs of bearish fatigue before testing the waters. Support is at 1.2700, 1.2650 and 1.2600 while resistance is at 1.2750, 1.2800 and 1.2850
The right shoulder of the bearish head and shoulder has held and the pair has dropped to the 0.7600 handle as bears rush in. Should bears manage to capture 0.7600, we would consider this a break of the neckline and expect further downside with targets at 0.7575, 0.7550 and 0.7525 while if bulls manage to control 0.7600, we would expect a correction to 0.7625, 0.7650 and 0.7675.
Gold bears released the fury yesterday as they stormed through 1305, breaking through the daily 100 EMA and not stopping until they reached the 200 daily EMA, almost 40 USD away. Support has been found at 1265 for now and should bears capture this level, we expect further downside with targets at 1260, 1255 and 1250. However, should bulls manage to hold 1265 and capture 1270, we might see a correction with targets at 1275, 1280 and 1285.