Price began to decline after reaching the upper trendline and the resistance at 1186. We had mentioned about this move in our yesterday's newsletter and have gone for a pending sell at this resistance level. The immediate support that is holding the yellow metal is the minor ascending trend line and once this breaks, the price will swiftly decline towards 1167 and 1150.
We are not expecting any bullish move on Gold but looking forward for a pull down especially when the markets are expecting for a USD gain. Not just because of the markets but a lot of US fundamental data's are also pointing towards a USD gain. Traders sentiment has not changed for the day with 56% short.
USD/CAD has been stalling its upside momentum and is in a consolidation mode for the last 3 days. Price is currently limited by the lower channel support and we are anticipating for a upward correction towards the 50 DMA or the 1.333 resistance area. If the price fails to retrace then the next support will be the 200 DMA where long orders are placed. We have kept this pair in the most watched list and monitoring the candle stick patterns and the cross overs in the lower times frames such as the hourly and the 4 hours.
There has been several bullish divergence's in the shorter time frames but does not confirm its indication, the best possible analysis is to see if similar divergences are formed in the 4 hour chart along with the pattern indication to go long.
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