Gold & Silver Pullback as Forecasted...Now for the Big Opportunity
A few weeks ago I wrote about how gold was starting to top and that everyone should expect a very sharp drop to the low $1600 area. How I came to this conclusion was though the use of inter-market analysis combining price patterns, gold futures volume, the dollar index and market sentiment.
AUD/USD has declined to the 1.0375 low, dropping to the 50% level on the Fibonacci (from the 1.1078 high). Intraday bias remains on the downside, as long as the 1.0778 minor resistance line is not broken. On the downside, the currency pair broke the 1.0390 major support line and hit the 1.0375 low.
The price action in precious metals and oil this past week has been breathtaking. The last time we have seen this much volatility in commodity prices was amidst the financial crisis in 2008 and the early part of 2009. Does this mean we are at the brink and risk assets are going to decline precipitously?
The Power of Trading Forex with the “When” Mindset
I’m going to explain to you how the “WHEN” mindset will make you a powerful and profitable forex trader. The “WHEN” mindset strategy is the way to go, it allows you to analyze and participate in the future outcome of the price action. I know what you are thinking … no it’s not guessing. Currency pairs move based on trends, and trends are extremely hard to break.
USD JPY continues to trade below the 85.50 high. Intraday bias remains on the upside, as long as the 83.10 minor support line is not broken. On the downside, if the 83.10 minor support line is broken it will indicate a sentiment change to the bearish side and target the 81.50 major support line.
The Dollar fell overnight against most majors as investors continued to weigh the political situation in the Middle East and North Africa. The lack of fresh news from these regions encouraged traders to lighten up safe haven positions placed in the Greenback over the past few days.
Euro Sells Off after Reaching Minor Retracement Zone
News from the European Central Bank that overnight lending at the 1.75% penalty rate spiked 15.8 billion ($21.4 billion), the highest since June 2009, pressured the Euros overnight. Reports circulating suggest that this spike may be related to renewed problems in the Euro-Zone periphery.
Euro Approaching Retracement Zone; Major Decisions have to be Made
With the Euro rapidly approaching the major retracement zone at 1.3577 to 1.3744, traders have to be asking themselves if overcoming this area means investors are betting on a rate hike by the European Central Bank or do they believe that Europe is overcoming its fiscal problems.