GOLD: Struggles To Put In A Bottom.
GOLD: Vulnerability to the downside is not over yet as the commodity is struggling to recover higher following it’s a bounce off the 1,470.90 level on Tuesday.
Guest post by www.fxtechstrategy.com
However, we will like to see a break and hold above the 1.526.26 level, its May 11’2011 high to convince the market that a bottom is in place. In such a case, the 1,576.20 level, its 2011 high will be targeted with a breach setting the stage for further gains towards its psycho level at 1,600 and then the 1,650.00 level.
On the downside, a violation of the 1,462.15 level will reverse its present upsides attempt and bring further losses towards its .618. Fib Ret (1,380.85- 1,576.20 rally) at 1,455.00.
A combination of these two levels is expected to provide a strong support and turn the commodity back up in the direction of its larger trend.
However, if this fails, the 1,443.70 level, its April 12’2011 low will be targeted ahead of the 1,409.75 level, its Mar 28’2011 low.
USDJPY: Builds On Recovery.
USDJPY: Having reversed its intra day losses to close higher on Wednesday, USDJPY now looks to strengthen further towards the 82.80 level, its April 27’2011 high.A cap is likely to occur here as that level is within the vicinity of its .50.
Fib Ret at 82.56. This if seen will send the pair back down but if this fails, we may see further gains targeting the 83.09 level, its April 20’2011 high.
Alternatively, the risk to this analysis will be a return below the 79.57 level. This will resume its weakness and target the 78.00 level, its psycho level and then the 76.18 level, its 2011 low.
A break will resume its long term downtrend towards the 75.00 level. All in all, USDJPY continues to build on its recovery as it is eyeing further strength.
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