Thursday, April 03, 2014
Gold slipped after testing $1392 per ounce.
On March 19, FED chairperson said that central bank may end its asset purchase program, after this strong reversal seen in yellow metal. Gold prices are once again under pressure. Technically breakage of $1434 will change the bearish outlook, but till now, game is in hands of bears. Strong selling pressure pushes the price as low as $1277 per ounce. Any bounce in gold will capped by the important level $1340. Overall trend is bearish. Most probably we are going to see new lows under $1180 (previous low).
Despite the negative unemployment claims & ISM Non-Manufacturing PMI on Thursday, US dollar climbed surprisingly and hit the session high 80.66. Dollar test the critical verge, if post new high, another up leg can be seen but this move is corrective and soon greenback is expected to trade under 80.
Euro breaks the important level 1.3705 against dollar on Thursday after Draghi’s comments. On downside now 200 days moving average is waiting which is at 1.3550. This will be a good level for bulls as it is also 61.8% correction level. Overall sentiment is bullish and buy on dip is the best strategy in EURO.
GBP break the level 1.6590 against USD on Thursday. Technical indicators are showing weakness in cable. May be we can see deep correction in pound. Overall below 1.6722, more weakness could be seen. Breakage of this level will trigger new bullish wave.
Important Events from US on Friday, April 4, 2014
USD Non-Farm Employment Change
USD Unemployment Rate