Spot gold rose modestly in late Asian trading on Tuesday, trading at around $1,931 an ounce. Leading financial information website Economies.com on Tuesday, the day’s euro/dollar, sterling/dollar, dollar/yen and gold trend forward analysis.
According to Economies.com, gold is at risk of a further plunge if it loses $1,929.50 an ounce.
Eur/USD closed below 1.1800. As trading began today, euro/dollar showed a bullish bias and again tested bearish channel resistance. Consolidation below this resistance is the first condition for the euro/DOLLAR to remain bearish for some time to come, with the main target at the 1.1680 level.
So unless the euro/dollar rebound breaks through 1.1810 and 1.1885 and remains above those levels, the bearish trend will remain in force today.
Euro/dollar is expected to trade between support at 1.1700 and resistance at 1.1880.
Today’s expected trend against the euro/dollar is bearish.
GBP/USD started the day with a bullish bias and tested the EMA 50 index. Random signals are positive and this could drive a rally in the next few sessions, but as long as GBP/USD does not break through 1.3145, we will maintain our bearish view and wait for the main target of 1.3000 to be tested.
On the other hand, we would note that once GBP/USD breaks through 1.3145, this will push the EXCHANGE higher and test the key resistance at 1.3230 first.
Sterling/DOLLAR is expected to trade between support at 1.3000 and resistance at 1.3180.
Today’s expected trend against sterling/dollar is bearish.
Usd/JPY continues to fluctuate around 106.00 and remains below this level. It is worth noting that stochastic indicators continue to signal negatively, supporting our bearish view on USD/JPY for some time to come, with the first target being 105.20.
Keeping the DOLLAR below 106.44 yen is important for continued bearish sentiment. A break below 105.20 would be a key factor in a major downward target of usd/JPY 103.65.
Usd/JPY trading is expected to be between support at 105.00 and resistance at 106.50.
Today’s expected trend against the dollar/yen is bearish.
Gold tried to break below $1,929.50 an ounce yesterday but ended the day above that level. Gold took a bullish stance as trading began and tried to move away from that level, suggesting it could rebound in the next few sessions, with the first target at $1967.90 an ounce.
As a result, gold prices are forecast to be bullish today. If gold breached $1967.90 an ounce, that would push it to its next target of $2008.80. It should be noted that should gold fall below $1,929.50 an ounce again, this would push the price sharply lower towards the first major bearish target of $1,901.80 an ounce, and the lower target of $1,860.90.