Gold Weekly Recap
This first week of 2019 has been another positive one for Gold, following a strong Christmas period. After establishing a Bull trend, posting higher-highs and higher-lows on each directional swing, Gold moved through important levels such as 1238 and 1250. This week, another resistance has been breached at 1286. Early trading has seen Gold slip back slightly, after initially posting a new recent high at 1298.
Gold the Week Ahead
Since creating a low at 1160 in mid-August 2018, Gold has been on the ascendancy. This Bull run gained momentum on 13th November and increased in strength in mid-December. Prices are currently sitting just below the psychological 1300 area and these round numbers are always relevant in this market. If Gold produces a Bear candle today, it would be the first warning sign for an extended period, and there is potential for this to happen. It is also worth noting that the Relative Strength Index is clearly in overbought territory however, Gold can afford a pullback without the Bulls losing overall control. Should this happen, then the first light support comes in at 1286 followed by 1274 however, the major support is down at 1250 and looks to be in no immediate danger.
Currencies
The surprising currency pair that has been relatively volatile this week has been USDJPY. It has been generally stable with 111.38 doing a good job as support. This gave way on 20th December, ending a Bull run that began in March 2018. Back then, USDJPY bottomed out with a low of 104.63 and then began a sustained rally. Once 111.38 was breached, this price switched to the resistance column and a failure to retake this point increased the downside pressure. On Wednesday this week, this pair witnessed a mini-crash, taking prices to a low of 104.66 after starting the day’s action up at 109.66 however, there was a swift recovery and matters look to be stabilising somewhat.