EUR/GBP Continues Climbing

EUR/GBP finally broke above the resistance at 0.7950 and slowly continued moving to the upside. The next level of resistance is located around 0.8100 – 0.8120 which is visible on the monthly time-frame and I think that it is almost inevitable for the pair to reach that level, likely very soon. The question is what will follow after that? The pair will either bounce off the resistance and likely retrace back to 0.7900, or it will break above that level and continue climbing. If it does break above the resistance its next long-term level of resistance would be around 0.8600 – 0.8700. Either way, for now I have a long position open and I won’t close it before it EUR/GBP reaches 0.8100.

Will Gold Start Falling Again?

March passed and the candlestick that formed on the monthly time frame below the resistance level at $1280 is definitely a spinning top. It is very possible that is a signal that Gold will once again start falling, especially if it breaks below the support at $1200, which coincides with (MA)89 on the monthly time frame. A breakout below that level would lead to a further drop to the next level of support, which is at $1165. If it breaks below that level in turn it could continue falling all the way to the support at $1060. All that said, I would wait and see whether there will be a breakout below $1200 before I open new short positions.

USD/CAD Is Climbing

Yesterday USD/CAD broke below 1.2922, but the break proved false even though the pair reached 1.2856. Later it retraced and returned to its old levels above the support, forming a hammer candlestick on the daily time-frame. That candlestick was a clear signal that the pair would start moving to the upside, which it did, further provoked by the fundamentals today. Currently it is testing the resistance at 1.3130 and a breakout above that level would lead to a further rise to the next level of resistance at 1.3170. A breakout above that resistance in turn could very likely mean that we will see USD/CAD climb all the way to 1.3430.