Thursday, 31 January 2013

Gold rallies from test of trend line drawn from last May's low, 1700 the next key hurdle

Gold has rallied this week from trend line support. So long as that support holds, we can expect a test of the nearby overhead trend line just below 1700. Above that and especially above 1800 we could see some fireworks. But one step at a time.

AUD/USD retesting upper trend line of 18 month old triangle, from above

Weekly chart shows the retest from a bird's eye view. Could go either way of course.

Zooming in to the past six months on the daily chart shows the retest more clearly. Long tails on recent candles to my mind tilts the balance of power slightly towards the bulls, though a rally through this week's high at 1.0477ish is needed to strengthen that view.