Gold High Due to Lower US Stocks, MACD Suggesting Positive Momentum

Posted: January 14, 2016 in Commodity Tips, Forex, Stock Tips

Gold prices are facing resistance almost in the same as the January highs of 1,113 whereas a better than expected Chinese trade data gave a support near the 10-day Moving Average at 1,085. Gold prices climbed higher due to the US stocks moving lower and the investors running towards the yellow metal to take cover. MACD(Moving Average Convergence Divergence) indicator is suggesting positive momentum. Trading Signal Trial
The Silver markets on Wednesday climbed up but were still within the same range which they have not left for some time. We have a resistance at $14.60 level, but with people rushing towards gold suddenly has brought massive buying buying pressure in gold. Hence, silver too might get some taste. we have hopes that the market might garner some short term gains in the immediate future. Any pullback from this level, might see a support at the $13.80 level.
Crude Oil
Crude Oil prices remained stationary and consolidated in the same range, despite of decline in inventories if heating oil and gasoline. We have a resistance in the vicinity of 10-day Moving Average at 33.86 and a support near the January low at 29.93. The Relative Strength Index(RSI) showed an oversold level. In any case, if we fall any more; the downward move would only gain speed whereas any upward rallies should be exploited.
The GBP/USD pair took a dive on Wednesday under the negative market pressure. The pair somehow managed to form a hammer and gives some hope of a residual resilience left. Any type of rally initiating in this area has the potential to be exploited as a short position. Even a breach below the lows from the past few days would serve the same purpose. Long positions at the moment are not comfortable to enter at the moment.
The EUR/USD after having found a jumping base at 1.08 level had a roller coast ride on Wednesday moving to and fro for the entire duration. The majority negative sentiment that is prevalent at the moment is dense enough to keep us on the sidelines for the moment. For the time being, best move is to exploit short positions on short term rallies.
The AUD/USD kept fluctuating around the 0.70 level which led to the pair slipping on Wednesday. The present scenario signals that it might go even lower. An up trend line was noticed to have been breached which can be considered to be a shift in the momentum and the rallies are also observed to be under selling pressure. Our expectations are around 0.65 level being reached given sufficient time.
The USD/JPY saw massive resistance at 118.50 level and dropped on Wednesday. The present scenario also suggest that the drop might continue. The main point of this pair is that ii is very sensitive to risk aversion and hence would see a large majority returning to sell US dollars.Long positions are only to be entered in case the 119 level is breached.


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