Well defined range on gold

Gold has formed a very good horizontal channel as shown on the daily chart, with the 1250.00 level as support and the 1269 level as resistance. Range trading could be tricky since the price could break out in any direction in any moment. That is why the most conservative option is to wait for the breakout and then the pullback to enter in the direction of the original breakout. Below the 1250 level, its next support is still the 1200.00 level. Above the 1269 level where we can see the 200 day exponential moving average, its next resistance could be the 1300.00 level, especially when the 55 day EMA is right at that level now. The retracement on the Dollar has a lot to do with the rally on gold, but we need a really good reason for the precious metal to break above the 1269 level.

The USD/CAD visits the 1.3100 level

On the daily chart of the USD/CAD we can see that the pair has dropped once again to the 1.3100 zone. Just below the 1.3100 level we can also see the 200 day exponential moving average, blue line, which may contribute another support on that zone. The pair may try to bounce to the upside and if so, then the 1.3200 level may act as its next resistance. But a breakdown of the 200 EMA may accelerate the bearish momentum and the price may even visit the 1.3000 level. All depends if oil keeps rallying, which at the moment is just consolidating between the 50 and 51.60 levels.

Possible pullback on the Kiwi

The New Zealand Dollar versus the US Dollar is trying to bounce to the upside from the 200 day exponential moving average as shown on the daily chart. The 200 EMA usually acts as a support or resistance zone, therefore we could see a bullish pullback on the pair, especially when the instrument is clearly over-extended to the downside. In case the price breaks to the downside, its next support could be the 0.7000 level. To the upside, we can see that there are no clear resistances, but any of the highs of the candles could act as resistance. Although, the most important resistance could be the 200 week exponential moving average, around the 0.7382 level.

FOREX TRADING ESSENTIALS

Success in the financial markets depends on the quality of the education you are getting.

ActivTrades, https://www.activtrades.co.uk/?page=education_trading_course

Strives to bring to its clients the best training possible to insure that they are successful in the markets. ActivTrades offers spread betting, forex, indices, commodities, and shares all under one roof. Additionally, the tools that ActivTrades offers are state of the art programming designed to simplify your trading. Please visit the link above to get more information and to register for the upcoming events at ActivTrades. Don’t miss this great opportunity.

Euro, three days in free fall

On the daily chart of the EUR/USD we can see that the price has been dropping from the 1.1200 level during the last three days and it is reaching the 1.1000 level, completing a 200 pip drop. The price may try to stall or bounce back to the upside from the 1.1000 level, but if it does, then the 1.1100 level could act as resistance. Above the 1.1100 level, the price may be returning to the congestion area around the 1.1200 level. We must keep in mind that the bearish trend is still in place and the price may break below the 1.1000 level. In case the price breaks below the 1.1000 level, then it may try to go and visit the 1.0952 level.

Key point on oil

WTI Oil has been rising steadily and on the daily chart we can see that it has made a high around the 51.60 level from where it bounces to the downside. Today the price of oil reaches the 50.00 level, which could act as support due to the fact that it has acted as resistance in the past. The bullish trend is still in place, especially when the 55 day EMA, purple line is pointing up and it is separating from the 200 day EMA, blue line. The 51.60 could still act as resistance if the price keeps rising, but if oil breaks below the 50.00 level, then it may try to reach the 48.00 level. The 55 day EMA may also act as support if the price drops to that zone.

Explosive rally on oil

WTI oil has broken once again above the 50.00 level, but with a lot more strength, after Russia said that it agrees with OPEC’s plan to freeze oil production. The news has caused oil to rally to the 51.60 zone as shown on the daily chart. The price of oil may try to stall at the 51.60 zone, but the bullish momentum is still in place. Above the 51.60 level, it next resistance could be the 53.00 level. To the downside, in case the price retraces, the 50.00 level could act as its first support, but it may try to break it to reach the 48.00 level, which could act as a better support. The commodity is over-extended to the upside and that is why it is vulnerable to a bearish correction.