Gold – Gold fell lower after it performed a false breakout at the 1233.95–1215.31 resistance area as we expected in our 20th May 2015 Market Outlook. Traders who went short at the gold market as we recommended may consider continue holding onto the short position while trailing the stop behind to protect the profits. Price is likely going to resume its bearish move to its next support area at 1174.88–1170.22.
Pound Dollar – GBP/USD broke its 1.5490 support level and closed below it on Monday. The long term trend is still bearish and the short term momentum had turned into bearish as well after the 1.5490 support level is broken. Traders may consider selling short at the 1.5490 resistance level (Previous support level) to jump on the bearish trend. Ideally, we would prefer to see rejections or any other confirmation at this 1.5490 resistance level before shorting for safer entry.
Aussie Dollar – AUD/USD did not pullback to its 0.7873 resistance level but broke its 0.7789 support level yesterday turning this 0.7789 support level into resistance level. Given that the trend is still bearish at the moment, traders may consider shorting this market when price pullback to the 0.7789 resistance level (Previous support level) to rejoin the bearish trend. If price pullback to the 0.7873 resistance level, traders may still consider looking for selling opportunity as it’s still a high probability level for traders to hunt for shorting opportunities.
Posted on 2015-05-27 06:30:44