Gold has been declining since the 18th of May, 2015. Based on last week’s data, the metal dropped as low as 1201.32, a major support level. The uptrend scenario has greater chances of prevailing this week.
In the event that the upside pressures overcome downside ones the precious metal could escalate as high as 1251.13, provided that there is a sufficient break above the 1232.20 level.
The stochastic oscillator confirms the bullish trend by indicating that the price has great chances of retracing once again to the upside, as the main and signal lines are above 19.5876.
Alternatively, a break below 1193.68 could force the metal toward lower levels such as the 1169.77.
USD/JPY – Will the Pair Drop this Week?
USD/JPY has been rising higher and higher since the 14th of May, 2015 with no any attentions whatsoever of retracing to the downside. Based on last week’s data, the pair has a greater possibility to retrace downwards from 121.78.
In the event that the bearish pressures overcome bullish ones the pair could drop as low as 119.52, provided that there is a sufficient break below the 120.67 and 119.99 levels respectively.
The stochastic oscillator confirms the bearish scenario by indicating that the price has for some time now stabilized below 79.3814, generating a strong resistance at this level.
In contrast, a break above 121.78 could be a strong indication that the pair can resume rising toward higher levels such as the 123.10.
Major Weekly Events
|
Date |
Time (GMT) |
Event |
Currency |
|
Tuesday, May 26, 2015 |
12:30 |
United States - Durable Goods Orders ex Transportation (Apr) |
USD |
|
12:30 |
United States - Durable Goods Orders (Apr) |
USD |
|
|
Wednesday, May 27, 2015 |
14:00 |
Canada - BOC Rate Statement |
CAD |
|
14:00 |
Canada - BoC Interest Rate Decision |
CAD |
|
|
Friday, May 29, 2015 |
12:30 |
United States - Gross Domestic Product Annualized (Q1) P |
USD |
Please note: The content in this weekly market analysis should not be taken as investment advice. It comprises our personal view.