The yellow metal is moving downwards for the eighth trading day approaching the initial support of 1321.00 as seen on the provided daily chart. Being covered by SMA 20 and SMA 50 in addition to the negativity on candlestick formation argue us to suggest further debasement this week; noting that a break below 1321.00 will bring aggressive downside actions. RSI 14 may cause some kind of fluctuation but MACD solidifies the technical anticipations of resuming the downtrend by drawing a negative crossover below its histogram.

** Short term (Less than three months)

** Chart is based on GMT+2 timing

Notes: 

*if price reaches within 20% from target before triggering entry, signal is canceled and not valid anymore.

The pair moved to the upside sharply last week and is getting closer to key resistance level of the ascending channel around 1.0339. Breaching 1.0339 might push the pair further to the upside around 1.0430 levels. Linear Regression Indicators supports the possibility of an upside move this week unless levels 1.0175 were broken.

The trading range for this week is between the key support at 1.0140 and the key resistance at 1.0540.

The general trend over short term basis is to the upside with steady daily closing above levels 0.9800 targeting 1.0485.

A bearish harmonic Butterfly Pattern might form around 0.9770 levels. Meanwhile, the pair is still trading positively benefiting from breaching key resistance level of descending channel earlier; Linear Regression Indicators also support the upside move. Hence, levels 0.9770 are considered an interval of the week’s trading trend as we need to see how the pair would react around it forcing us to prefer to be intraday neutral in our weekly report waiting for confirmation signals.

The trading range for this week is among key support at 0.9495 and key resistance at 0.9970.

The general trend over short term basis is to the downside stable at levels 0.9775 targeting 0.8860.

This week’s trading started to the downside with great volatility but is limited above Linear Regression Indicators. Stability above Linear Regression Indicators keep the possibility of an upside move in an attempt to test key resistance level of the ascending channel as shown on graph, which means testing levels around 104.00. Stability above 101.70 is necessary to keep our positive outlook.

The trading range for this week is among key support at 100.35 and key resistance at 105.05.

The general trend over short term basis is to the upside as far as areas of 97.00 remain intact targeting 105.60.