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XAU/USD
Gold ’s had an unbelievable start to the week as it surged
above the all-time highs at 1610 and is now bumping up against 1625.
Gold’s move is being driven by worries about the US dollar as
investors seek a safer alternative to the struggling greenback. Any
pullback to 1610 will be seen as a buying opportunity, while traders
are also likely to take long positions on
EUR/USD
The Euro is having trouble pushing above resistance at 1.4450,
while the US dollar’s woes are hitting the risk currencies like
the EUR. This is resulting in selling pressure on the EUR/USD and
traders are looking to take new shorts around 1.4400/50 in expectation
of a move back to 1.4280. A clear break of 1.4450 changes the view to
bullish.
GBP/USD
No real change on the GBP/USD with the pair still seeing
resistance at 1.6350 and support at 1.6200. Like most other currencies
this morning, the GBP’s fate will be determined by the US dollar.
The best strategy is to focus on the important technical levels and
potentially wait for a break above 1.6350.
USD/JPY
The dollar-yen should be one of the better pairs to play as the
US debt negotiations drag on as the USD/JPY traditionally behaves in a
rational manner in these situations: that is, the USD/JPY will usually
fall on the back of US dollar negative news. At the moment, the line in
the sand is 78.20 and a break below this level will be bearish. |
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