Monday, February 13, 2017 –
Gold 4 hour chart shows price falling below the 50 moving average in the first hours of the trading week. Stochastic made a bearish cross and is currently reaching extreme oversold levels.
The daily chart for gold is also looking bearish. Stochastic made a bearish cross and RSI also touched overbought levels a few days ago. We are short term bearish for gold right now. Short term target is a support from May 2016 which is 1204.07. Second target if price below the first level is 1182.63.
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Friday, the 4 hour chart shows that gold price just bounced off the 50 moving average and stochastic is showing a bullish cross right now. Last Thursday’s session saw Gold traders taking their profits after a 5 day climb. This bounce could be a start of another run towards making new highs for this month for gold.
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CAD/JPY – The Canadian Dollar just broke out and touched the 50 moving average on the daily chart. This happened around the release of Canada Labour Force’s report. The report shows that employment rose by 48,000 during the month of January 2017, while the unemployment rate has decreased by only 0.1%.
First major resistance for the pair is around the 87.515 level. Stochastic is also showing a bullish cross. Profit taking is to be expected soon as traders don’t want to hold through the US and Japanese meeting.
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The 4H chart above for the USDCAD shows the pair went below the consolidation levels of 1.31510-1.32000. Stochastic showing the price is currently in oversold levels. Price may find support at the 50 moving average (Light Blue line). RSI is currently at neutral levels. 4H chart looks short term bearish but traders should go in with caution.
The daily chart for the USDCAD tells a different story. Price is currently below 200 moving average and stochastic is near the overbought levels and it is looking to form a bearish crossover soon. The pair needs to find support around the 1.30020 level and bounce up to break the current downtrend. The pair has been bearish since December and possibly may continue in the long term.
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