Gold: It consolidates, but keeps its bearish trend

After making a low around the 1063 level, gold stalls its fall during the last two days and it is going sideways as we can see on the daily chart. The 55 day exponential moving average (purple line), around the 1122 level could act as a resistance in case the price retraces to the upside. However, fundamentally there are no reasons yet for gold to rally, unless the Dollar weakens or the risk aversion increases in the markets for any reason. The 1063 level could continue acting as support, but the probability of seeing a breakdown is high.

NZD/USD: Resistance at the 55 day EMA

The 55 day exponential moving average or EMA could act as a good support or resistance zone on some occasions. On the daily chart of the New Zealand Dollar versus the US Dollar we can see that the pair has kept a good bearish trend and it has stayed within a channel. But after the price broke below the 55 day EMA (purple line) and made a low at the 0.6428 level, the pair rallies again to the 55 day EMA where it stalls at the moment. That level of the 0.6582, where the 55 day EMA is located could have the price bounce to the downside. However, the pair may also break above the 55 day EMA and if that happens, then the 200 day EMA (blue line) at the 0.6830 level could act as its next resistance.

Copper at six year lows

Copper continues with its bearish trend, but at the moment it seems like it is finding some support at the 206.62 level. Due to the fact that the bearish trend is still strong, the price of copper could fall towards the 202.00 level, which could act as a temporary support. Likewise, due to the big drop, we could see a bullish pullback and the commodity could try to go and visit the 220.17 zone, which has acted as a support in the past and now it could act as a resistance.

Gasoline continues falling

The gasoline contract for December continues falling and it is currently consolidating just below the 55 period exponential moving average on the one hour chart (purple line), after it made a low for today around the 1.2021. Besides the 55 hour exponential moving average, the 1.2545 level has been acting as a good resistance, but a breakout of that level could cause the price of gasoline to retrace to the upside towards the 200 hour exponential moving average (blue line), around the 1.3018 level. To the downside, the 1.2021 level may continue acting as a support.

The EUR/USD breaks below the 1.0700 level

The Euro versus the Dollar started the session weak after the Paris attacks on Friday and drops below the 1.0700 level as seen on the daily chart. But the attacks on Paris are not the strongest reason of why the Euro has been dropping. In reality, the Euro remains weak, because of the divergence in monetary policies between the European Central Bank and the Federal Reserve. This week’s fundamentals could be key to the future direction of the pair. Tomorrow we have the ZEW economic sentiment out of Germany and the inflation numbers out of the US. If the inflation in the US has risen, then the FED could have another reason to raise interest rates and the EUR/USD could continue falling towards the 1.0600 level.

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Gold seems to be heading lower

Gold has been consolidating during the last few day, as we can see on the daily chart, but today the precious metal has made a lower low, indicating that it remains weak and it could continue falling. Due to the fact that the Dollar and gold have a negative correlation, if the Dollar continues strengthening during this week, gold may reach the support level at the 1070 zone. To the upside, the 1098 level could act as resistance, but if it breaks that level, it may retrace to the 1115 zone.