The commodities block has been rising, with oil and metals leading the way. Gold has tested its down trend line resistance again at 1354.00, with a close above this level targeting resistance around 1365.30. The creation of higher lows strongly reinforces this move but caution must be taken that the market doesn’t enter a sideways pattern. A move above resistance leads to 1370.00, followed by 1378.00 and 1390.00. The 1400.00 area remains a target gold bulls will relish achieving but focus will soon shift to higher levels at 1435.00 and 1450.00.
Support comes from the trend line at 1346.50, which has been successfully retested after the breakout. The 4-hour 50-period MA is located at 1343.56, with the 100 MA at 1339.40 and the 200 MA at 1334.75 and rising. The 1333.66 level is mildly supported by the rising red trend line at 1328.90, with stronger support close by at 1327.70. The 1320.00 level held up well during the test on the 6th of April, with a drop below targeting 1311.14 and the 1300.00 area, specifically 1302.50.
The NZD/USD pair has settled into a trading range between 0.71500 and 0.74340, after breaking above trend line resistance at 0.72000 and successfully retesting said trend line on two occasions since. The upward bias is still present on the chart, with a move above the highs needed to push the market higher. The 0.73447 level is providing resistance at present, with the high at 0.73900 also creating a lower high. It is possible this formation turns into a Bull flag, with a target in the 0.77300 area. A move above resistance at 0.75000 and 0.76240 is needed to reach that area.
Support comes in at the 50 DMA at 0.72760, with the 100 DMA at 0.72312 and the 200 DMA at 0.71867. The falling trend line comes in at 0.71330. A move under this line would target resistance at 0.70800, followed by 0.70000 and 0.69087. The lows of late 2017 come in at 0.68213 and 0.67797.
By Edward Anderson, FxPro Analyst