End of Week Report 11 Jan

Gold Weekly Recap Despite not reaching last Friday's high at 1298, it has been a good week for Gold, holding on to gains and staving off a correction. On Tuesday and Wednesday, prices dipped to 1279 and 1280 respectively but on both occasions, the Bulls covered well for the close. With small gains in early trading today, Gold seems to be in stasis holding pattern waiting for the next move.

Gold the Week Ahead If Gold can finish the week above the first key support at 1276, then the Bulls will retain control going into next week’s action. That is not to say making a clean breach of 1300 would be easy. Round numbers always play an important part in this product, often from nothing other than a psychological perspective. Should the Bulls manage to achieve this, then the next objective will be the high from 14th June 2018 at 1309. A close above this point would technically signal further gains over the coming weeks. Currently though, Gold appears to be resting comfortably between 1276 and 1300.

Currencies
AUSUSD spent most of last year in a solid downtrend with the only noticeable bounce occurring during October and November however, this was short lived and on 6th December 2018, as a trend support line gave way and the Bears regained control. By 2nd January 2019, the subsequent sell-off had taken this pair to a low of .6711. By coincidence, the 38.2 Fibonacci Retracement of the whole move down comes in at .7257, precisely the same level where the trend support was breached. This is an important level and will be monitored closely by longer-term investors. AUSUSD is currently trading circa the .7230 area, so an attempt on the above resistance is possible, but there is a likelihood that the Bears will retaliate.

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