Gold Cracks Big Support
DailyFX | Apr 24, 2014 10:21AM ET
- Low volatility suggests important break looming in the Yen
- GBP/USD stalls below key Gann resistance
- GOLD turn window eyed next week
Foreign Exchange Price & Time at a Glance:
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY has found resistance over the past couple of days near the 2nd square root realtionship of the year’s low in the 102.75 area
- Our near-term trend bias is negative in the exchange rate while under 103.10
- The 4th square root realtionship of the year’s high at 101.35 is major support that needs to be breached on the downside to set up a more important decline
- Another minor cycle turn window is seen early next week
- Only a move over 103.10 would turn us positive on the dollar
USD/JPY Strategy: Like the short side while below 103.10.
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Instrument |
Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
|
USD/JPY |
*101.35 |
102.05 |
102.45 |
102.75 |
*103.10 |
Charts Created using – Prepared by Kristian Kerr
- GBP/USD has stalled over the past week just below the 17th square root relationship of last year’s low in the 1.6850 area
- Our near-term trend bias is higher while above 1.6710
- The 1.6850 level needs to be overcome to confirm the start of a new leg higher in Cable
- A very minor cycle turn window is eyed early next week
- A daily close under 1.6710 would turn us negative on the Pound
GBP/USD Strategy: Like the long side while over 1.6810.
|
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Instrument |
Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
|
GBP/USD |
1.6655 |
*1.6710 |
1.6790 |
1.6800 |
*1.6850 |
Focus Chart of the Day: Gold
Gold broke under the 1277 1x1 Gann angle line of last year’s low earlier today. A daily close below this level will be especially negative for the metal in the short-term and open the door to further weakness into next week’s key cycle turn window. Key attractions on the downside into this timeframe look to be a Fibonacci confluence near 1260/63 and a convergence of several square root relationships and Gann angles in the 1244/47 area. We would urge caution against getting too negative on the metal as the middle of next should see at least an attempt to turn higher if not a full on reversal. Only unexpected aggressive strength over 1300 would signal XAU/USD has turned earlier than expected.
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
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