End of Week Report 9th November

Gold Weekly Recap Gold began this week hovering just below the key 1238 Fibonacci Retracement level and has been drifting lower each day and if it closes below the open today at 1223, there will be a full set of five down days. Gold attempted a recovery on Wednesday, touching a high of 1236 at one point however, the bounce was short lived and it closed that day down at 1226. Gold has been disappointing in terms of action this week, but the Bulls need to ensure that Gold ends the week comfortably above the key 1214 support.

Gold the Week Ahead Last week was more volatile than this, having slipped marginally below the 1214 support before staging a rally. The week before, Gold moved though the 1238 resistance on a couple of occasions but also closed back below this point. Currently, Gold remains trading within the new range and although on its fifth consecutive down day, has been quite orderly. This suggests that Gold may end the week inside its new trading range but the Bulls must stay watchful if they fail to defend the 1214 support for the close.

Currencies In February, EURUSD was trading up at 1.2555 before starting to struggle. By April month-end, it had taken out some key supports and selling accelerated. On 15th August, it touched a low of 1.1301 before recovering. The bounce slowed circa the 38.2 Retracement of this whole move at 1.1778. It was here the sellers emerged again, this time taking this pair to a low of 1.1302 on 31st October. There was another attempted bounce, this time only reaching 1.1499 on Wednesday of this week. It has slipped back since then and look worrying currently. It is now trading circa 1.1340, but unless the Bulls act, there may be an attack on the major 1.1300 support. If this is breached, then this would be a major concern.

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