Gold prices slid as low as $1092 an ounce earlier today, which is largely owed to the USD’s gains vs. the EUR. In the past week, Gold has made a significant downward correction, which can be directly correlated with the bearish trend of the EUR/USD cross. This recent activity has raised the stakes for traders. From here on, the forex and commodity markets will see very high volatility indeed.
Pivot: 1108.00
Our Preference: SHORT positions below 1108 with 1090 & 1083 as next targets.
Alternative scenario: The upside breakout of 1108 will open the way to 1117 & 1126.
Comment: the RSI is capped by a strong resistance, calling for a new downleg.
Trend: ST Ltd downside; MT Bearish
Key levels Comment
1126** Horizontal resistance
1117* Intraday resistance
1108* Intraday pivot point
1102 Last
1090** Horizontal support
1083* Intraday support
1075** Horizontal support
