GBP/USD: Bearish breakdown

The GBP/USD has been in a consolidation, oscillating in both directions around the 55 day exponential moving average, purple line, as we can see on the daily chart. Actually, the pair has formed what it appears to be a symmetrical triangle. During the last two sessions, the Pound has started to lose some ground versus the Dollar and it has broken below the lower trendline of the triangle, reaching the 1.2300 level where it has stalled at the moment. From this point the pair may continue lower and if it does, then the 1.2200 level may act as support, followed by the 1.2100 and finally the 1.2000 level. In case the pair goes back up, it will be entering the congestion area around the 55 day EMA and it would have to break above the upper trendline of the triangle in order for it to change its trend to the upside.

Good rally on the USD/CAD

The USD/CAD has gained a lot of bullish momentum as shown on the daily chart during the past few sessions. The rally may take the price of the USD/CAD towards the 1.3400 level, zone that has acted as a resistance in the past. The Canadian Dollar and oil have a positive correlation, but the recent pick up in oil prices has not been enough to prevent the US Dollar from gaining ground versus the Canadian Dollar. In case of a pullback, the USD/CAD may come back to the 1.3200 zone, where we can find the 200 day EMA (blue line). But for now the bullish momentum is still in place and the USD/CAD may continue rallying.

Possible pullback on gold

God has come very close to the 1266 level as shown on the daily chart, but it has been pulling back during the last few sessions. If gold continues dropping, then it may reach the 200 day EMA, blue line, which could act as a support, due to the fact that the bullish trend is still in place. In the mid-term, gold may continue rising, especially if the 55 day EMA, purple line, crosses above the 200 day EMA, confirming what it is known as a “golden cross”. In other for the bullish trend to be sustained in gold, it must break above the 1266 level, but another possible scenario is that the price of gold may stay consolidated between the 1232 level (200 day EMA) and the 1266 level.

Gold shoots up

Gold had been stuck around the 200 day EMA, consolidating around that zone without taking a clear direction during the past few weeks. The 200 day EMA is currently around the 1232 level, but the price may try to reach the 1266 level, which could act as resistance. The 55 day EMA (purple line) has changed direction to the upside and the angle of inclination is showing us that the bullish trend may be gaining some strength. If the risk aversion continues threatening the markets, then the price of gold may continue higher towards the 1266 level. On the other hand, gold may try to correct towards the 200 day EMA in case of a pullback, which could act as support. But we must be aware that if the 55 day EMA crosses above the 200 day EMA, then the price of gold may continue all the way to the 1300 level. 

Gold resumes its bullish trend

Gold has been consolidating during the past few weeks, oscillating around its 200 day EMA, which is at the 1230 level, but today the precious metal has rallied once again, breaking above the highs that it made around the 1245 level. The uncertainty surrounding the FED decision on interest rates has pushed the traders and investors to seek the safety of gold. The Dollar has been retracing to the downside and due to its negative correlation to gold, this has also supported today´s rally on the precious metal. If the greenback continues falling, then it is possible for gold to keeps its bullish trend and it may try to reach the 1300 level. But we must be aware that on the way up, the price of gold may have some pullbacks. Below the 200 day EMA, blue line, the 55 day EMA, purple line, may act as support in case the price falls to that zone. The 1200 level may also act as a good support zone for gold.

False breakout on the EUR/GBP

The Euro has been weakening versus its main counterparts, including the Pound, even breaking below its 200 day EMA as shown on the daily chat, blue line. The EUR/GBP tried to gain bearish momentum at the beginning of today’s session, but it lost that momentum and comes right back to the 200 day EMA. If the pair does not confirm the breakdown below the 200 day EMA, then a false breakout will be completed. To the upside, above the 200 day EMA, its next important resistance could be the 55 day EMA, which is currently just below the 0.8600 level. But we must keep in mind that the 200 day EMA may also act as resistance and the price of the EUR/GBP may come back down from that area. If the pair goes back down, then its next relevant support may be the round number level at the 0.8300 zone.

Possible bearish breakdown on the EUR/JPY

The EUR/JPY has been boxed between the 200 day exponential moving average, blue line, and the 55 day exponential moving average, purple line. On the daily chart of the EUR/JPY we can see that the price is stuck at the 200 day EMA, but it seems like the bearish momentum is accumulating at that zone, raising the probabilities of a bearish breakdown. If the price of the EUR/JPY manages to break below the 200 day EMA, which is around the 119.79 level, then it may try to go and visit the 119.00 level. Below the 119.00 level, the next support may be the 118.00 level. To the upside, the 55 day EMA may act again as resistance in case the price reaches that zone, but if it breaks above the 55 day EMA, then the 122.00 level may also act as resistance, followed by the 123.00 level.