After early session pressure, the December Treasury Bonds posted a daily closing price reversal bottom which may be an indication that it has run out of sellers.
Thursday’s action suggests that traders may have begun the process of squaring up short positions ahead of next week’s Federal Open Market Committee meeting.
The weaker U.S. Dollar is helping to boost December Gold prices this morning. After reaching a short-term bottom at $1315.60, slightly above a downside target at $1313.00, gold appears to be forming a support base.
The stronger Dollar and the lack of demand for risky assets helped trigger a sharp break in December Gold. The daily chart indicates that price and time square at $1295.50 to $1297.90. Watch for a technical bounce at this level since this support cluster may be attractive to both new buyers and profit-takers.
December Treasury Bonds have been under pressure since reaching a top at 135’12. The seven day break from this top reached a critical retracement zone overnight at 132’10 to 131’18. This zone is the 50%/61.8% correction of the 129’05 to 135’12 range.
December Treasury Bonds are trading higher this morning after ADP employment services released a weaker-than-expected jobs outlook. Investors were trading an increase of 20,000 jobs, the actual report showed a decline of 39,000.
December Treasury Bonds are trading higher this morning after ADP employment services released a weaker-than-expected jobs outlook. Investors were trading an increase of 20,000 jobs, the actual report showed a decline of 39,000.
December Gold posted a closing price reversal top on Thursday after an attempted breakout to the upside failed to attract strong buyers. You can’t really blame the slightly better than expected U.S. Weekly Initial Claims report for putting in the top, but this news did contribute to the day-long decline as sentiment shifted away from risk aversion.
December Gold tested but closed under a key Fibonacci retracement level on Monday at $1228.00. Slightly above this level is a pair of downtrending Gann angles at $1230.60 and $1232.50. This setup has the potential to stop the current rally.
