The US dollar continued to show its weakness against major currencies and gold yesterday. The gold price was rising on this week, as we predicted on Monday session. Regarding demand of investors to leave weak dollar while the US president criticizes Fed’s monetary policy – the opening of the long positions in Gold was good decision.
However, now we see that the price is stuck at 1195$ level and there is might not be rising to 1200$ level, as we expected before. The Cayman indicator still shows overboughtness with 78% of buyers. That is why we recommend to close long positions by current prices. If the price goes up, we will look forward to open new short position from 1210-1215 levels.
Yesterday we confirmed that “rising start” formation formed on the previous week was strong bullish signal in the EURUSD pair. In addition, while US and China are in negotiation process on this week, we recommended to open long position with take profit at 1.16 level, which was reached by the end of Tuesday trading session.
The EURUSD pair is close to test important resistance levels 1.16-1.1750, where it was trading in July. Today FOMC minutes will be published at 18:00 GMT, this news could make huge influence on the pair, which is fraught with a surge in volatility. Let’s wait until FOMC Minutes be released and see how market will perceive it. The EURUSD pair still has chances to reach 1.1750 on this week.
So our targets for:
Gold – is selling from $1210
EURUSD – is selling from 1.1750