Gold prices declined recently and remain at a risk of more losses, while EUR/JPY might continue to move higher.
Gold Price Under Selling Pressure
- Gold price declined heavily this week and traded below $1284 against the US Dollar.
- There is a major bearish trend line forming with resistance at $1280 on the hourly chart.
- Today in China, the Gross Domestic Product (GDP) for Q3 2017 was released by the National Bureau of Statistics of China.
- The forecast was +1.7% (QoQ) and the actual result was in line with the forecast.
Gold prices were under a lot of pressure this week and made a downside move from the $1300 swing high against the US Dollar. The price declined sharply and moved below the $1290 and $1280 support levels.
The pair traded towards $1275 and settled below the 100 hourly simple moving average. A low was formed at $1276.46 and later the price started correcting higher.
On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the $1288.81 high to $1276.46 low. Moreover, there is a major bearish trend line forming with resistance at $1280 on the hourly chart.
A break above the trend line resistance followed by the 50% Fib retracement level of the last decline from the $1288.81 high to $1276.46 low is required for buyers to gain control.
On the downside, a break of the recent low at $1276 would open the doors for a move towards $1270.
Today in China, the Gross Domestic Product (GDP) for Q3 2017 was released by the National Bureau of Statistics of China. The forecast was slated for a rise of 1.7% in the GDP in Q3 2017 compared with the previous quarter.
The actual result was in line with the forecast of +1.7%. Looking at the yearly change, the market was looking for an increase of 6.8% in Q3 2017, and again the result was as expected. The Industrial output for Sep 2017 was also released today by the National Bureau of Statistics of China.
The forecast was slated for a rise of 6.2%, but the actual was better as there was a rise of 6.8% compared with the same month a year ago.
EUR/JPY Forecast – Euro To Break 133.50 Vs Yen
- The Euro traded higher recently and settled above the 133.00 resistance against the Japanese Yen.
- There are two bullish trend lines forming with support at 132.65 and 132.30 on the hourly chart of the EUR/JPY pair.
The Euro started a new upside move and traded above the 132.60 and 133.00 resistance levels against the Japanese Yen. The EURJPY pair is now approaching the last swing high at 133.42 and looks set for more gains.
The pair is likely to clear all sell offers near 133.40-50. A close above 133.50 would open the doors for a move towards the next resistance at 134.00 in the near term.
Buying dips in the short term towards 133.00 can be considered with a tight stop.
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