XAU/USD – SPOT GOLD GOES BUOYANT AFTER BREAKING ABOVE KEY RESISTANCE
We saw spot gold rally above key resistant level 1293.98 last week after a rejection of lower prices on Friday, August 25th. This signals that bulls heavily dominate this market and hence we are going to see much higher prices for spot gold in the coming days and weeks. In my trading analysis for last week I discussed that the uptrend for this pair was intact and we maintained a bullish bias as long as price remained above 1272.98 key support level. I also discussed that more aggressive traders may look to go long even as price remained below 1293.98 whiles pretty conservative traders may wait for a break above this level before going long. Such conservative traders may now look out for buying opportunities on this pair this week at the following support levels: 1316.64, 1311.58, 1305.23, and 1300.94. We can find key resistance at 1374.09 and there appear to be much turning points up the way to this level as seen on the weekly chart.
S&P 500, DAILY CHART
AUD/JPY – AUSTRALIAN DOLLAR/JAPANESE YEN SET FOR A LONG TERM RALLY
During last week’s trading session we saw the Australian dollar/Japanese yen form an elongated bullish candle on Tuesday, August 29th. Following this, we saw price break above 87.408 near term resistance on Friday after the elongated bullish candle. This makes it pretty certain that the bullish candle on August 29th may lead the pair to form new highs in the coming weeks. Traders may look out for dip in prices on intraday charts this week to go long on this pair. The zone 87.570 – 87.149 will serve as a strong support for buying opportunities on this pair for this week.
AUSTRALIAN DOLLAR/JAPANESE YEN, DAILY CHART
U. S STOCK INDEX, S&P 500 RESUMES UPWARD MOVE
The S&P 500 which retraced slightly below 2458.13 key support level and remained below for some days, broke above this level during trading session on last week Thursday and closed higher. This signals that we are likely to see the stock continue reaching higher prices in the days and weeks ahead. In my analysis last week I discussed that the underlying price action dynamics for the stock is bullish, as lower prices got rejected in an attempt to test 2414.64 key support level. I also indicated that a push above 2458.13 will signal the resumption of the upward move. Traders not already long may now look out for retracement to the 12 period EMA on the 4 hour chart this week to go long.
Author: E.O. ESSIEN
(FOREX MARKET TECHNICAL ANALYST)
Email: elijahotoo.eo@gmail.com (0240080104)
DISCLAIMER: THIS ANALYSIS IS PURBLISHED STRICTLY FOR INFORMATION PURPOSE ONLY AND DOES NOT SERVE AS AN OFFER FOR THE PURCHASE OR SALE OF ANY FINANCIAL SECURITY.
