Forex Investment and Currency Trading

Gold - Short term caution required following last night’s poor close at the base of the day’s range. The high prices posted yesterday have not sustained so far. A down day today will suggest a short term correction lower which could also be an indication for further consolidation on EURUSD. The support level on EURUSD is at 1.4448 and support on Gold is at $989. A close below there would indicate a correction down, possibly towards $971.

EURUSD

• Closed to new high form this uptrend and is attempting to push through the trend across the highs, which is at 1.4509 now. This was breached on an intraday basis yesterday though we did not close above it.
• Near term resistance above there is at 1.4622 which is the 61.8% Fibonacci retracement of the
  move down from the highs followed by 1.4720
• A rally through there would would suggest that the medium term USD downtrend has resumed.
• Support is at 1.4448 and a close back below there would likely delay the medium term USD
  downtrend from resuming.

GBPG10 - While the overall trend for GBP is down, the support level on the equally weighted GBPG10 Index at 83.23 has held and we may be forming a very short term double bottom pattern with a neckline at 84.38. It would suggest a squeeze up to 85.53 in the short term.

GBPUSD

• Bullish key day up posted on GBPUSD yesterday
• Again, this does not suggest that the market is ready to test the recent highs and does not change the overall cautious / bearish stance on GBPUSD, but it does indicate that resistance levels may be tested at 1.6625 and 1.6664.

NZDJPY

• NZDJPY ST: Trend across the highs comes in at 64.57 which is marginally below the 76.4% Fibonacci retracement against the high which is at 64.90. A close today below 63.97 will mean a bearish daily reversal will be posted
• Support is at 63.30-40 and a close below there would add to the bearish bias

EUR NOK - Support around 8.50-8.54 is holding and the past two sessions have seen indecisive doji patterns. This is not dissimilar to the candle patterns seen in May this year from where EURNOK turned back up A bounce here in the short term seems likely and a breach of the resistance level at 8.71 would suggest further gains towards 8.86