Gold
Writing post at 5.47 am IST ( GMT+5.30). Spot gold price crashed further after making highs of near 1266$ in week’s beginning. Major selling is due to USD Index taking the lead. It even crossed our major resistance of 94.30 last night and currently cruising at 94.30. Spot gold prices are trying to settle near its major support of 1237$, It already tested 1238$. We could be making a double bottom if xauusd holds up and fire from here.
We cautioned in our yesterday’s post that market is still in flat zone and should be taking a buy only when it cross 1262$, It could not break our hurdle and tanked almost 18$ from peak. Read our yesterday’s post here
President Trump tweeted demanding Europe to pay larger share in NATO. Once again it was Trump who moved USD Index higher and sent xauusd in deep shock. Other metals such as Copper, Zinc, Lead also took the beating this time as base metals may face demand concerns due to China US trade war.
A good support on gold price chart stands at 1237$, If traders break this major base and sustain below our support. Then expect more pressure in xauusd upto 1230$- 1224$ today.
A good resistance on gold price chart stands at 1253$, If traders break and sustain above our resistance. Then expect good recovery in xauusd upto 1260$- 1266$.
Conclusion: Gold is in weak territory. Avoid any major trade for now. We have ECB monetary policy minutes and US unemployment claims which would give clear direction to market. Stay cautious.
Silver
Just like other metals, Silver price also could not sustain on higher levels. Xagusd crashed from almost 16.10$ to 15.77$. Currently prices are trading almost at lowest level at 15.79$. Today’s low made by silver is like re-visiting its previous low of 15.76$.
A good support on silver technical chart stands at 15.75$, If traders break and sustain below this level. Then expect good pressure in xagusd upto 15.51$- 15.30$.
A good resistance on silver technical chart stands at 16.05$, If traders break and sustain above our resistance. Then expect good recovery upto 16.24$- 16.48$.
Silver is in weak zone, Avoid any major buy trade for now.
Euro
President Trump tweet asking Europe to pay fair share of NATO’s expenses sent Euro in deep shock as it lost almost 100 pips from its yesterday’s high. Currently eurusd surviving at 1.1670. A good support on this forex pair chart stands at 1.1640, If traders break and sustain below this level. Then expect good pressure in euro upto 1.1600- 1.1550 today.
A good resistance on this forex pair chart stands at 1.1720, If traders break and sustain above our resistance. Then expect good recovery upto 1.1760- 1.1800 in euro.
Euro trend is in weak zone for now.
More will update to our signals subscribers.