Gold, EUR, GBP weekly Review
Gold weekly Analysis
The previous week has seen Gold move bullish for the better part of the week. Currently, gold is trading above a significant support area 1152.56, and 1153.94. As long as gold is trading above this range, long positions are recommended. Traders should however correlate gold to the US Dollar index since the two are negatively correlated at the movement, this anti-correlation move is expected to continue probably for the whole week. Thus, a clear change is direction of one them (USX and Gold) should signal a change in direction for the other. In another case, should gold close below the key level 1149.10, then short positions are recommended for most gold trades this week.
EUR/JPY weekly Analysis
In the past week week, EUR/JPY has maintained a a moderate positive correlation with other major currencies EUR/USD and GBP/USD. It is anticipated that, during the cause of this week, as long as the pair trades below the resistant trend line short positions are recommend. This perspective should only be rendered useless should the pair shoot and close above the resistant trend line. In case the pair close below the next support trend line, then further short movements are expected.
GBP/USD weekly Analysis
GBP/USD has maintained an upward move since it broke above a key range. During the cause of this business week, the pair is expected to trade on the higher ranges as long as it trades below the resistant level 1.5900. should price cross above the level 1.59251, the price is expected to move further upwards, however, in an alternative scenario, should the price cross below 1.5634, and again bounce off from it from below, short positions are recommended. Further more, this long position is recommended since EUR and GBP have had positive correlation in the previous week, and now the two are expected to move to the same direction, since both of them are anti-correlated to USD/JPY, and the latter is directly and positively correlated to US dollar index. We anticipate a possible minor corrective move upon reaching the resistant trend line.
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