Mohammed Isah's  Instablog

GOLD: With Gold reversing its previous week losses to close the week higher on Friday, further upside offensive is likely in the new week.In such a case, the 1,802.75 level, its Nov’2011 high comes in as the likely upside target with a violation of there turning risk towards the 1,827.85 level, its Sept 19’2011 high. Further out, resistance comes in at the 1,862 level. Its weekly RSI bullish and pointing higher supporting this view. Alternatively, the risk to our upside view will be a return to the 1,666.90 level with a cut through here calling for a move further lower towards the 1,634.60 level, its Oct 24’2011. Below here if seen will expose the 1,595.75 level and then the 1,532.90 level, its Sept’2011 low. All in all, Gold has halted its two-week declines and set the stage for a possible recapture of the 1,802.75 level.

AUDUSD: With a reversal of almost half of its corrective weakness started from the 1.0749 level seen following a strong rallying the past week, there is risk of further bullish build up in the new week.This will leave the pair targeting The 1.0330 Level and the 1.0444 level, its Nov 03’2011 high with a penetration of here opening the door for further upside towards the 1.0569 level, its Oct 31 high. Further out, resistance stands at the 1.0749 level, its Oct 27’2011 high.  Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, on any pullback from its current price levels, its Nov 25’2011 high at 1.0106 will be targeted. We expect the pair to see a breather here and possibly turn higher but if this fails to occur, further bear threats should push the pair further lower towards its Nov 30’2011 low at 0.9942 level with a breach turning focus to its Nov’2011 low at 0.9663 level and subsequently the 0.9620 level, its Oct 06’2011 low. All in all, the pair continues to sustain its recovery triggered from the 0.9663 level as it eyes the 1.0444 level and beyond.

EURUSD: The pair remains biased to the upside in the near term on corrective recovery as it looks to extend that trend  possibly towards its key resistance located at the  1.3611 level, its Nov 18’2011 high.This is coming on the back of a recovery triggered from the 1.3212 level in late Nov’2011. On a cut through the 1.3611 level, the 1.3866 level, its Nov 04’2011 high will be targeted with a breach turning attention to the 1.4241 level, its Oct 27’2011 high. Further out, the 1.4342 level, its daily falling trendline comes in as the next upside target. Its daily RSI is bullish and pointing higher suggesting further strength. Conversely, the risk to our analysis will be the pair’s failure to follow through high on its current strength which could a turn to the downside towards its Nov 30’2011 low at 1.3258 with a break below there exposing its Nov 25’2011 low at 1.3212. EUR must break and hold below here to pave the way for a move further lower towards the 1.3144 level, its Oct’2011 low. The bigger support lies at its psycho level at 1.3000. All in all, though still holding on to its medium term downside theme, the pair faces the risk of further corrective strength.