Last week destroyed bulls’ hopes to continue the ascending tendency on the market. The correction of the growth goes on but the question remains: is the descending movement a correction or we are looking at the deployment of the market? Meanwhile the markets are falling and this goes on. It is not essential whether it is a deployment or the correction, since there are no signals for purchase.
One of the weakest currency pairs (as usual) was EURUSD pair that moved away from euphoria connected with quantitative easing in the US and a great ransom of government bond in Eurozone. Now after a quick growth the pair is lowering on a daily basis and the first stop might be a level of support of 1.2750. Interestingly enough the correction level of Fibonacci is the same of 38%. That is why it is possible to keep short positions on euro dollar up to this mark or to open new sales. Future of the movement of EURURSD pair quotations will be determined on 1.2750.
Tuesday-Wednesday of this trading week were decisive for British pound and gold.
During these two trading days there were some breakdowns of consolidations on both of these tools. Thus the pound started trading lower than the consolidation of last week. And after a fake try to break down the consolidation of quotations of 21.09.2012, it is possible to sell pound sterling against the dollar for prices lower than lower bound of consolidation, less than 1.6160. The GPBUSD has a cruising range: first support is at a psychologically important level of 1.6000.
However this level should be reached on dynamics and the short position might be reached from it. But it will happen afterwards.
With such dynamics the movement of gold on Wednesday is not clear. As if the gold actively broke down the consolidation and took a pretty good impulse down, but the rebound inside the day from minimal values means a stable power of customers. From technical point of view it is a very good time to open short positions on gold, since 1) the price broke down the consolidation and 2) the closing of the day occurs much lower than a lower bound of consolidation, and the minimum of impulse is far- the minimal cruising range exists.
It is recommended to have a bear mood for the rest of the week.Social button for Joomla