More Upside In View
The gold price is moving in range right above the 38.2% retracement level and tries to resume the upside movement. It is still trapped within the extended sideways movement, so only a valid breakout will bring us a clear direction. Technically, gold is still expected to resume the upside movement, but it remains to be seen if it will have enough directional energy to do this after the false breakout above the 23.6% retracement level.
Gold registered some gains today as the USD goes down ahead the US data release and most important, ahead the FED Chair Yellen’s speech, as well as ECB President Mario Draghi.
The yellow metal will lose altitude if the USD jumps higher in the upcoming hours, the Core Durable Goods Orders could increase by 0.4%, while the Durable Goods Orders may drop by 6.0% in July versus a 6.4% growth in the former reading period.
Price is narrowing before an impressive movement, and direction is hard to predict because anything could happen after the Jackson Hole Symposium speeches. Technically was somehow expected to breakout from this range, but the buyers were too exhausted. Maintains a bullish bias as long as is trading above the 38.2% retracement level. The false breakout above the 23.6% retracement level signaled another leg lower, but this scenario will take shape only if the USD will jump and will stabilize above the 93.81 static resistance.
GBP/JPY Sharp Increase Expected
GBP/JPY has turned to the upside after the failure to reach the major downside target from the first warning line (WL1) of the ascending pitchfork. We have a breakout in play, it has climbed above the median line (ml) of the minor descending pitchfork, a valid breakout will send it towards the upper median line (uml).
Technically should increase also because has failed once again to reach and retest the lower median line (lml) of the minor descending pitchfork. Price climbs higher as the Nikkei stock index failed to make new lows and now has turned to the upside.
EUR/GBP Another Leg Lower?
The EUR/GBP slipped lower today and resumed the yesterday’s bearish candle. The bulls seem too exhausted on the short term, so the bears could take the full control. Should come to retest the median line (ml) of the blue ascending pitchfork after the rejection from the 0.9226 static resistance. Technically should drop aggressively after the failure to reach and retest the upper median line (UML) of the major ascending pitchfork, but is premature to say this because it could still retest this dynamic resistance.
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