Skip to content

Gold to Surge – Currencies will Remain Choppy. Week Ahead, Sept 11

September 11, 2016

Sept 19 –  View Intact

Gold @ 1327.50 = Though support line $ 1275 is the key for current ongoing gold rally to exhaust. However, $ 1300-10 is a strong support level, which may not surrender as gold still has potential for $ 100 up move. Potentially gold could make another attempt towards $ 1360-80 zones this week.

JPY @ 102.65 = Japanese Yen is hard nut to crack and is likely to resist gain against US Dollar in Short to Medium Term. Strong support lies around 103.80-20 zones, with major support around 105.50-80 levels, which should not surrender.

Therefore, any weakness of YEN will be opportunity to buy Japanese currency. This week I see risk of further gains, break of Resistance level 101.20 will certainly challenge BOJ seriousness about its intervention threat as Japan’s Central Bank is struggling to add stimulus. Hence, failure to hold Resistance will risk for another move towards 100.

GBP @ 1.3260 = Cable has strong resistance around 1.3450-80 zones, which is unlikely to give up this week or else move could extend up to 1.3620. A dip below 1.3080 is required for further decline.

However, Pound will potentially find buyers on dip, as UK data will provide further direction to Sterling. Better economic numbers this week may give further boost, as traders/investors will have faith in the British currency, as they start believing that Brexit shock is initially much smaller than earlier projected.

Thursday’s MPS & Retail Sales data this week will provide further direction. Therefore prior to MPS announcement, on up-move profit taking would be the preferred strategy. Medium to Long Term Bearish view intact.

EURO @ 1.1231 = Since ECB could not add stimulus, it has given boost to the currency. This means minor up move is possible. Support 1.1120 should hold, violation of this level will expose currency to test next support zones at 1.1020-50, which may not happen. However, break of 1.3050 will open gates for 1.1420.

@asadcmka

(Disclaimer applies in my post, which means that the perspective is my personal view. I have made every effort to ensure accuracy of information provided. However, accuracy cannot be guaranteed. This article is strictly for information and not intended for Trade or Business Transaction). 

Advertisements
Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: