Gold: Pullback to the 200 EMA on the 4 hour chart

Gold has been making some very interesting movements around its 200 period exponential moving average on the 4 hour chart (blue line), around the 1194.18 zone. At the beginning of the week we saw how the price reached that moving average and how it consolidated there for a while before breaking to the upside. The price has now come back to its 200 EMA and it looks like it is completing a breakout and pullback pattern. Let’s pay attention to this pullback to the 200 EMA, because we could see a bounce to the upside from here.

The USD/SGD bounces to the upside from a key support level

The US Dollar versus the Singaporean Dollar has found a good support around the 1.3636 zone. A little bit below that level we can see the 55 period exponential moving average on the daily chart (purple line), which has also contributed to make this zone a good support area. We can see that the uptrend is still in place and the pair may try to go back and visit the 1.3935 area, especially if the Gross Domestic Product reading out of the US for this Friday comes out better than expected.

AUDUSD: Possible return to the 0.7800 level

The Australian Dollar versus the US Dollar couldn’t stay above the 0.7900 level, even though it tried to break it in a couple of occasions. On the 4 hour chart we can see how the price is trying to come back down to the 0.7800 level, which could become a good support for the pair. A little bit below the 0.7800 we can see the 200 EMA (blue line), which could also help make this zone a good support. Let us be attentive to a possible visit to the 0.7800, because the price may try to bounce to the upside from there.

Gold: Breakout or bounce from the 200 EMA, 4 hour chart?

Gold has been having a good pullback lately, in part supported by the decline in the US Dollar. On the 4 hour chart we can see that the price has reached the 200 exponential moving average zone around the 1193.31. The 200 EMA tends to become a good support or resistance level, especially on the 4 hour chart. However, we can see on the chart that the price has already touched the 200 EMA once and it tried to bounce from there, but it has now come back to that level. The more times the price visits that 200 EMA or consolidates around it, the higher the probabilities of seeing a breakout instead of a bounce. The best thing to do is to wait for confirmation of the breakout and then the pullback to this same moving average for a possible long entry.

AUD/USD: Possible test of the 0.7900 level

The Australian Dollar versus the US Dollar has finally broken out above the 0.7800 level and it may try to visit the 0.7900 level. A possible visit of the 0.7900 could have the price bounce to the downside from there, because that level could become a good resistance. If there is indeed a bounce to the downside from the 0.7900 level, price may try to come back to the 0.7800 again. Therefore, we must attentive as to how the price may react once it tests the 0.7900 level.

61.8% Fibo retracement on the GBP/USD

The Pound has come back to the upside versus the US Dollar for today and it has retraced to the 61.8% Fibo as seen on the one hour chart. The retracement is from the run that it made from the high on Wednesday at the 1.5162 to yesterday’s low at the 1.4688 level. The Fibonacci retracements of 61.8% and 76.4% could act as very important support or resistance levels. In this case, the GBP/USD has retraced to the 61.8% and it is trying to bounce to the downside from there. A good trading technique to use, is to place the stop loss above the 76.4%, because on occasions the price tends to go and visit that level before turning back.

EMAs confluence on the NZD/USD

The exponential moving averages or EMAs could act as dynamic support or resistance levels. When two moving averages coincide around the same level on different time frames, this can cause that area to become a very important support or resistance. On the NZD/USD we can see that the 55 EMA on the 4 hour chart is at almost the same level as the 200 EMA on the one hour chart, around the 0.7380.

From the zone of the 0.7380 we can see that the price has bounced to the upside and breaks above the 0.7400 level once again. On the 4 hour chart we can also see that the 200 EMA is around the 0.7445 level and it could act as a good resistance level; therefore, we must be attentive to a possible visit of the price to that zone, because there could be a bounce to the downside from that area.