Trading Report on Forex & Gold - August 13th 2013
The pair started off the week with a 20 points downward gap, which it filled within hour but couldn't manage to move above Monday's pivot point of 1.3350 and fell nearly 60 points. The move was purely technical as there was no relevant fundamental due on Monday, where the pair bounced back from its support level of 1.3276 and managed to close above the support level of 1.3291.
Currently the pair is trading at 1.3297 at the start of Asian session on Tuesday where a move above 1.3311 could take it towards 1.3330 and yesterday's high of 1.3350. Whereas, a sustainable move below 1.3280 could be dangerous for the pair as the sellers would enter and take the pair to test its next support levels at 1.3270 and 1.3251.
Today the German Economic Sentiment and European industrial production data is due in the European session, followed by the Core retail sales of the U.S in the U.S session.
Similar to Euro, Pound also plunged against the greenback on Monday solely based on its technical move as there was no data due for GBP yesterday. However, inflation numbers for the U.K economy are due today in the European session where inflation rate greater than 28% would certainly help the British pound to gain against the U.S dollar.
Followed by its 55 points fall on Monday, the pair seems to be vulnerable to fall further provided it breaks its support level at 1.5445, after which it could test 1.5422 and 1.5400 where buyers may enter again.
However, a move above 1.5489 would lead the pair to test 1.5512 after which the resistance levels of 1.5534 and 1.5556 would be waiting for bulls.
After closing at 1313 point on Friday, the precious metal showed a strong comeback as it started off the week with substantial gains where bulls took the metal from 1313 level till 1344 resistance area, after which it closed at 1336.5 on Monday.
The move was solely based on technical levels as the metal was hovering above the 200-EMA support levels on all its time frame charts, ranging from 5 minute 4-hourly chart, whereas, it is sustaining above the 50-days EMA on its daily chart.
Currently, the metal is hovering around 1337 level at the start of the Asian session on Monday where a sustainable move above 1345 resistance area could take the metal to its next hindrance levels of 1375 and 1384, where the latter one is the 100-day EMA on its daily chart.
However, on the downward side, if it manages to break 1334 support level then its next targets would be 1329 and 1321, after which buyers may enter again if there is no strong fundamental discouraging them to go long on metal.
A good move could be seen today if the retail sales data of the U.S comes out to be one-sided, while the inflation numbers are due on Thursday along with unemployment claims.