Gold: Bulls are going to mark a new 2019 high at 34,000 in this week.

Yellow metal is shining again with an opportunity to mark a new high of year 2019 in this week. Several bullish factors are lining up to start the New Year including technical, fundamental, geo-political and monetary. The demand for precious metals and base metals is likely to show an increase in 2019, barring a major global economic contraction. For gold and silver, investment demand could swing prices at the margins.

People tend to buy precious metals when they are fearful of holding conventional financial assets. Central bank buying will continue to be a significant source of gold demand, according to the World Gold Council. Russia, meanwhile, continues to be the world’s most aggressive gold buyer. The Russians are adding about 20 tonnes to their reserves every month as they liquidate holdings of U.S. Treasuries.

Another major state buyer of gold is China – and it is likely buying much more than it reports publicly. With the growth of the Shanghai Gold Exchange, precious metals are increasingly flowing into Asia to satisfy growing monetary, investment, and jewelry demand in the region.

From technical prospective we can see that gold is trading in pure uptrend market from short term to intermediate point of view. An uptrend line is also lying on the daily chart from where bulls are finding support and taking it to north side. In the first week of February 2019 we have seen a massive bullish storm till 33750 levels and then we have seen a correction till 32835 levels which is an alternate opportunity to buy again for those who missed earlier.

By applying the fibonacci retracement line from the starting of the rally to end of rally (30100 se 33750 level) we can see that the recent correction was the exact 23.6% and from there it bounced on last Friday. We will keep our short to intermediate bias bullish on the gold as long as an uptrend line remains intact. 

The bulls are making successively higher highs and higher lows of the swings on the daily chart. The current rally is followed by weaker USD due to US retail sales sank 1.2% in December in the biggest decline since 2009. What puzzled investors is how sales could have been so weak when other indications were that customers were solid in the month.

Presently gold is trading and sustaining above all the major and minor EMA lines. Last 3 consecutive bullish marabuzo candlesticks has been posted on the chart which is known as three white soldier pattern which is providing us bullish signal. Well in our previous report also we have mentioned that buy the gold around 33,000 with the strict stop loss of 32700 for the target of 32500 and 32500, we are hoping that our readers must have made handsome amount of profit from this move, however it is hovering near to our first target.

On international chart, the $1330 seems as stumble block for bulls and a daily closing above this level will open the way towards the $1340 and $1350 level in near term and the way bulls are reacting it seems like bulls arrive at these level in near term. Gold has marked 10 month’s fresh high on the daily chart and further bullish sentiments are still awaited. Investors are advised to keep their view bullish on the gold as long as $1310-1300 level remains intact, a daily closing below this level will change the bias from bullish to bearish however, the chances are very low for this incidence.

Well short term to intermediate term trend is up so in an uptrend market buy on dips will be profitable strategy and every dips should be convert as buying opportunity. From technical prospective we can see that rounding bottom pattern is in process of formation and it is in completion phase once gold will touch the $1350 level the price pattern will complete automatically.

 A bullish crossover on the MACD indicator is generating bullish signal and supporting the bullish momentum. RSI has came out from overbought territory and now it’s providing us fresh buy signal. The 33750 level is key resistance level followed by 34000 whereas 33000 is key support level followed by 32750 level.

Trade idea:-  Odds are in favor of bulls and daily to weekly bias remains bullish on the yellow metal so traders and investors are advised to go long at current market price in the range of 33300-33400 for the target of 34000 and 34200 and add your long position till 33,000 with the tight stop loss of 32700 level.

USD/JPY-Bulls are trying to pull the pair at north side

By analyzing the daily technical chart we can see that earlier pair was heading at south side and was making successively lower los n lower highs but after arriving at 104.65 level we have seen a pull back on same day.But after a pull back we have seen a deep consolidation in the pair which indicates that both bulls and bears were fighting to take the pair at their own side, eventually we have seen that bulls won the war against the bears.

 As we mentioned in our report that breakout on either side will give us new buy/sell signal and we watched that bulls took the charge and heading towards north side.

From techical prospective we can see that a rounding bottom pattern is in process of formation which indicates that 115 level is unfinished target for bulls.From last two consecutive days we have seen bullish sentiments and totally buying is going on with every pair of JPY. USD/JPY looks set to continue churning as roiled markets collect themselves and take stock, though broadly bullish market sentiments is unlikely to see the pair make a full recovery unless the Pacific-Asia market session sees a full revival of risk appetite.

Presently bulls took the pair at upside and above the moving average which is itself a bullish signal. Well the way pair is reacting it seems like pair will move down further towards 115 level in near term. Odds are in favor of bulls. Intraday  bias remains bullish on the pair.A daily closing above 112.50 level will open the way towards north side i.e. 115 level in near term. A bullish crossover on the MACD indicator is generating bullish signal and RSI is also favoring the bulls for the time being.

Three white soldier pattern is in process of formation on the chart or we can say that a bullish marabuzo candlestick followed by the another  bullish marabuzo have created the chances of further weakness. The 107.00 is immediate support level followed by 109.50 level whereas 112.50 level is immediate resistance level followed by 113.50.

EUR/CAD: Bears are dominating the bulls and heading south side.

By analyzing the daily technical chart from different time frames we can see that pair is dominating the bulls at every nook & corner and it is heading south side with full of bearish momentum. The pair made progress as it has provided us a valid rounding top price pattern. Overall pair is falling down from 1.5632 level which is itself a key resistance level. Pair slipped to 1.4938 level continuously and pair started to receive the further supply pressure from there which is almost 700 pips.

The current sell off is not limited it seems like bears have taken the charge and now they are ready for further sell off. It seems like bears are playing at front foot due to bearish rain and presently pair is trading and sustaining below the moving average lines which is supporting and providing strength to the bears. The way bears are reacting it looks like they are approaching the 1.4750 level in near term.

Yesterday’s bearish marabuzo candlestick is suggesting us that bears will move down further on the other side indicators are also suggesting us that 1.4750 is not far away from here. Well we may see the reaction of bears at strong supply zone. A daily closing below 1.4750 level will open the way towards the 1.4700 level.

Overall pair is sustaining below the moving average lines which is supporting the bearish sentiments.Odds are in favor of bears and intraday bias remains bearish on the pair as long as 0.5250 level remains intact. The RSI is also supporting the bears from negative territory and a bearish crossover has been occurred on the MACD indicator which is also generting bearish signal and strengthening the bears. The 1.5250 level is key resistance level followed by 1.5500 level whereas 1.4750 level is key support level follwed by 1.4600 level.

NZD/USD: Potential Rounding Bottom Pattern About To Complete

November 29, 2018

 

In our last report we have mentioned to buy this pair at 0.6600 level, we are hoping that readers must have made handsome profit from this predetermined move. Well we already to anticipated that potentical rounding bottom is in process of formation when it was in it’s initial phase. Well presently pair is hovering at 0.6847 level which is generating pure bullish signal and indicating that pair is appraoching the 0.7050 level.

 

From technical prospective we can see that an uptrend line is lying on the daily technical chart which is generating bullish signal. Pair is making successively higher highs and higher lows on the daily chart and the way bulls are approaching the 0.7057 level in near term.  A bullish marabuzo candlestick above the moving averages is leading the pair and heading towards north side.

 

Well the current stance shows a bullish momentum and pair has crossed the moving average, the 0.7057  is the next stumble block for bulls . We are hoping that bulls will clear this level.The way bulls are reacting it seems like bulls have started the journey and they are not going to stop as early, we are hoping that bulls will test the 0.7057 level atleast.

 

November has been a good run for the NZD/USD, continuing a string bump upwards from October’s bottoms near 0.6425, and resurgence in broad-market Dollar bidding sees the NZD/USD maintaining a healthy grip on the longer timeframes, with Daily candlesticks pinned well above the 50-day moving average near 0.6830.

 

Three white soldier pattern followed by a big bullish marabuzo candlesticks above the moving average line are supporting the bulls on the daily chart. Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 0.6700 level remains intact. The RSI is also supporting the bulls from positive territory and a bullish crossover has been occurred on the MACD indicator which is also generting bullish signal and strengthening the bulls.

AUD/JPY: Clear Breakout Of Bullish Flag Pattern, Pair Will Shoot Up

November 29, 2018

 

The Australian Dollar (AUD) against the Japanese Yen (JPY) is an exciting pair for its relation to risk. The pair is frequently among one of the most highly correlated pairs to price action in US equities on a short to medium term basis. The pair has a propensity to rise in a low risk environment on carry flows while the opposite is true when we see a ‘risk-off’ approach in the markets.

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