EUR/USD – EURO DOLLAR GOES BUOYANT PAST MAJOR RESISTANCE
The euro dollar is set for a long term rally this year as we saw the pair pull back slightly to mean price support zone 1.2033 – 1. 1921 last week and rallied robustly up, breaking above major resistance 1.2033 on Friday. By the nature of markets, price seldomly decline after a massive rally. Hence, the directional bias for the euro dollar remains upward. It is likely we shall see a consolidation of price this week before the upward momentum rebounds. Long term traders looking to join this bull market may wait for buying opportunities in the coming days within the support zone 1.2054 – 1.1942.
GBP/USD – STERLING, CABLE MAKES ONE YEAR HIGH
Last week trading session recorded massive appreciation for the sterling as it rallied past yearly resistance 1.3586 to make one year highs against the greenback.
When price makes a new high, it can go even higher and with this idea we maintain a bullish bias for this market as we are very likely to see the sterling make further appreciations against the dollar in the coming days and weeks. Waiting for long pullbacks on the daily chart during robust up moves is a loser’s game.
Traders may therefore zoom in unto lower time frames like the one hour and the four hour chart for buying opportunities on retracements to the 12 period EMA during trading sessions this week.
XAU/USD – SPOT GOLD BREAKS ABOVE KEY RESISTANCE
Spot Gold is having great gains in trading sessions early this year. The security continued it upward move after a one week consolidation below key resistance 1322.44, breaking above this level last Friday. From the underlying price action dynamics the asset is set to continue trading higher.
Traders looking to invest in spot gold may lookout for buying opportunities this week on retracement to mean price on the four hour chart using the 12 period EMA as reference.
By E.O. ESSIEN
E.O Essien is an Associate Financial Economists, author, currency trader, and a private trading coach. He can be contacted via email at elijahotoo.eo@gmail.com or on +233240080104/+233203656160.