Weekly Data: Gold Ahead of Busy Week

With no signs of reversal or corrections the most plausible scenario would be a continuation of the current trend at least in the short term. This is always dependent on the economic news related to the US Dollar which there is a lot coming this week. We can easily notice areas of possible resistance on the chart which are the Fibonacci levels of 23.6% at around $1660 price area which is also the trendline and the 50 day moving average. If the price continues its downward momentum we can expect a first point of support being around the $1620 price area which consists of the lower band of the Bollinger bands and the 0% of the Fibonacci.

The main question mark this week is over Friday’s release – while gold might well bounce  upward if the figure of 200K on the NFP  is accurate, a higher than expected figure could lead to a retreat by the price at least in the short term.

Fiber, daily

Fiber (EURUSD) has been mostly declining for the last ten months with the price finding support in late September at around the $0.95300 price area and rebounding to the upside until today. The price is currently trading around the $0.98800 area which consists of the 50% Fibonacci retracement level and also the 50 day moving average. The reversal/correction to the upside was strong, breaking through the resistance levels of the 50 day moving average, the major trendline which is in effect since February and the upper band of the Bollinger bands.

We can expect a strong support area at around the $0.97800 price area which is at the 38.2% of the Fibonacci and the major trendline. The Stochastic indicator is not showing any overbought levels so there are no signals that the upward movement is anywhere near the end. With the major publications throughout the week it is almost impossible to be a calm week for fiber. Important news is always on the trader’s radar with NFP, unemployment rates and PMI creating volatility in all the pairs related to the USD.

Risk/reward ratios and money management rules are what makes the difference between the winners and losers in such volatile times.

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