Gold has hit the support of 1.6115 . At that particular level, Bank of England’s Carney said that Bank of England may start to increase interest rates next spring if labour market conditions continue to improve. Of all places to release the news, they choose a support level. A morning star formed at the support and price then traded higher. I personally believe that the GBPUSD is over sold. However for the GBPUSD to move higher, it first has to close above 1.6282. I am still weary of a strong GBP. Possible sell levels are marked in the bigger blue box area.
Like the GBPUSD, EURUSD is also oversold to me. Price is trading near the support of 1.2834. However I am not buying the EURUSD as it is in a very strong downtrend backed by poor fundamentals. If price manage to reject the support area of 1.2834, possible retracement areas are 1.3126 and 1.3196. If price reject those level, continue to sell the EURUSD.
USDJPY are currently trading at the 6 year high levels. I am holding a buy view on the USDJPY. Since prices are quite high at the moment and also trading near the resistance of 107.60, I am waiting for the USDJPY to retrace. If 107.60 is indeed the resistance level which the USDJPY will reject, I would target the 105.66 – 105.55 , 105.07 – 104.94 or 104.45 to look for buy. Any price action of rejecting the mentioned levels, buy USDJPY.
I mentioned in my earlier postings that I have a sell gold view. If gold manages to close strongly below 1180.11, we could see gold testing 1041.56. Stay tuned to the 1228.18 support level which it is trading now to see if price will reject this support area.