Friday, 16 March 2012

Gold.... ( & Eur$)

From yesterday's post heres gold after last nights retouch... As always price does what it wants when it wants and it is never over until the 'Fat Lady sings'. Maybe we will not crash straight down and we may have another touch on the black LMLP. Perhaps we will break above it? I am bearish gold purely on the technical picture but we can see here that it has found support off the dotted reaction line ( which comes from the magenta/pink fork- see yesterday's daily chart).
I supect that price will encounter some resistance off the underside of the dashed red RL at 1661$ area plus there is the small fork in grey i have added which has already offered some structure with a touch on its UMLP. I am deliberately trying to keep this chart uncluttered and simple so price action is more visible.
The euro has surprised me and i was stopped out of a short trade mercifully before the CPI data came out. We have seen over 100 basis point rally and price is heading towards the new dark blue CL at 1.32 area but is now on the green down sloping UMLP. The long range bars suggest that there is more to come but i watch this level 1.3171 with interest.

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