Gold: Upside Potential To $1208 On The Cards
There may be a shift in bias on the cards for Gold, this week is unfolding very interestingly in the markets. The technicals are painting a vivid picture between Dollar pairs and the commodity, Gold found support at around 1185.00 and has since rallied upon Dollar weakness.
The USD/JPY weekly chart currently looks to be printing a huge evening star formation at the 114.00 key level, should we end the week this way it is likely weekly support level 112.00 will be taken out and further decline to follow.
USD/CAD has rallied with the Canadian Dollar decreasing in value, as the price of oil, one of Canada's major exports, slumped.
The Dollar index is beginning to show weakness falling back below the 95.50 support level that the bulls fought numerous times to break through.
Should the technicals keep pointing towards a decline in the Dollar investors will be looking to the age-old safe haven that is Gold, the yellow metal does need to break above the 1215.00 level before a substantial move higher can occur but we may well see 1208.00 in the coming days.
Written by @Moore_FX...