Gold markets went back and forth during the session on yesterday, testing the 1180 level. This is an area which is important in this market as it was a support. We believe that the bounce from here will more than likely test the $1200 level next. On the other hand, if we break down below the bottom of the range for the Tuesday session, this market will more than likely head back down to the 1150 level.
The silver markets initially fell during the course of the day on yesterday, but struggled to keep the losses as the 16.50 level offered support. This is an area that has offered support and resistance both several times, and as a result it has affected the market again. The support resulted in turning the market around and forming a hammer, which is bullish. If we can break the top of this hammer, we believe that the market then heads to the 17.50 level given enough time. The 17.00 level will be a bit resistive but we feel that it will break above.
The light sweet crude market fell during the session on yesterday, testing the $47.50 level for support. The $47 level below that is supportive, but if we can break below there, we should see this market fall even lower and heading to the $45 level. The market has been very bearish, and this is a market that we think will sell off every time it rallies. The market should continue to fall based on not only upon the less demand, but also the rising value of the US Dollar. The $50 level above should be resistive.
The EURUSD fell during the course of the day on yesterday, as we are now below the 1.0750 level. With this, we believe that the Euro continues to fall, and will eventually test the 1.05 level for support Given enough time. With that, we are sellers of short-term rallies as we believe this market will continue to be choppy with a downward bias.
The GBPUSD rallied during the session on yesterday, but lost about half of the gains. The area just above is massively resistive, we are waiting for the break below the bottom of the range for the session on Tuesday in order to start selling again. If we get below there, this market will then head to the 1.45 level given enough time. We continue to sell rallies on short-term charts that show signs of failing as the downtrend is so firmly ensconced in this particular pair.
The AUDUSD went back and forth during the session on yesterday, testing the 0.76 level. However, this is a market that looks like it will break down, and it will given enough time. Any rally at this point of time should be a nice selling opportunity, and as a result we will continue to be sellers every time this market bounces. If we break down below the 0.76 level decisively, we feel that this market will then head to the 0.75 level and below as the Australian Dollar continues to suffer.
The USDJPY fell during the session on yesterday, but found enough support just below the 120 level to turn things back around and formed a bit of a hammer. Because of this, if we can break above the top of the hammer we are buyers as the market should then continue to head towards the 122 level. As of now, we are not looking for selling opportunities and believe that this is more or less a “buy only”.
The NZDUSD went back and forth during the course of the session on yesterday, testing the 0.75 level for resistance. We believe that the 0.74 level below is supportive, so if we break below the bottom of the range of the session on Tuesday, we will start selling again and market may head to the 0.72 level. Commodity markets are very soft, so it’s quite difficult to imagine buying this pair.