Gold
Last Friday, Gold posted a high at 1298, just short of the psychological 1300 resistance. These round numbers are always relevant in this instrument, which has proved to be the case again. After reaching this high, there was some selling, probably end-of-week profit-taking, eventually closing at 1284. Friday also provides the first support level for this week’s action at 1276 followed by 1265. Yesterday, Gold made some small gains but these have been returned in early trading today. There is slight Bearish divergence showing on the RSI, but as yet there is no clear indication that a sell-off is to be expected. Even if this did happen, the longer-term picture still favours the Bulls whilst it remains above the first important support level down at 1250.
Currencies
Last Thursday USDCAD saw heavy selling that has continued on into this week’s action. This followed a series of high-wave candles where the market opens and closes around the same price, but produced a reasonable range. One of these candles is unilaterally seen as indecision, but a series of them is a stronger warning. 1.3545 was an important level for the Bulls to defend and when this broke, the selling increased. The Bulls also had an opportunity to defend at 1.3444, but again the Bears eased through this support. Yesterday's action provided more negatives, with a close below the 38.2 Fibonacci retracement of the move up that began on 1st October last year. This came in at 1.3328 and will now form the first resistance. The next support level is at 1.3253 and has previously been a heavy work area. Matter appear overdone but as yet, there are no reversal signals.