Forex Signals and Gold Report For August 30, 2013
The currency pair remained under pressure on Thursday as it closed in the bearish zone on Wednesday below the critical support level of 1.3350, and lost more than 100 points yesterday where it tested 1.3215 area after the rally. The German CPI data was not up to the mark and also indicated that the demand for goods and services in the economy is slowing down due to which the prices are not increasing as expected; moreover, the U.S economy grew way better than expected in the second quarter this year where its growth rate was 2.5% after beating the forecast of 2.2%.
Currently the pair is trading at 1.3237 where a move above its today's pivot point 1.3263 can take it to test 1.3285 and 1.3307 where sellers would start entering the market again. On the other hand, a move below yesterday's low of 1.3215 could take it down further to 1.3206 and 1.3184.
The German retail sales also contracted by 1.4% in August against its growth forecast of 0.5%. Moreover, the European unemployment data is due in a couple of hours that could bring some volatility in the pair instantly.
The Pound stood firm against the greenback on Thursday despite the USD got stronger against major pairs and gold. GBP/USD remained in range and did not break its support level of 1.5486 as the speech of BoE Governor Carnet was hawkish and indicated a massive recovery by the economy that also avoided the triple-dip recession this year.
Currently the pair is trading at 1.5521 where a move above its critical resistance level of 1.5540 could take it further up to 1.555 and 1.5567, breaking of which could show 1.5583. However, good opportunity for sellers is still there as long as the pair does not move above 1.5540 where breaking of yesterday's low of 1.5486 could drag it down to 1.5468 and 1.5451.
The metal has been under pressure for the past two days where it failed to sustain above the resistance level of 1430 and since then it has been dropping down, where it has fallen down to 1397 level today at the start of European session as the U.S dollar is getting stronger due to good economic indicators output. The U.S economy grew by 2.5% against its previous figure of 1.7% where it also beat the IMF forecast of 2.2% for the second quarter of this year.
Moreover, the concerns for the stock market investors are rising because the better the results of economic indicators come, the more the chances are that the FED would cut down on its monetary easing plan because the need to do so is not as much as it was before.
Provided the precious metal sustains below 1400 psychological level, it would go on to test 1391 1382 and 1375 very soon, breaking of which could show 1364 support level. On the other hand, sustaining above 1400 means bulls could take the metal further up to 1413 1421 1430.