Gold Fell Below $1,300

After months of consolidation yesterday Gold surprisingly moved to the downside and decisively broke below the support at $1,300 which it had tested many times in the past weeks, then it reached a new low at $1,266. Gold is currently retracing from that level, but so far there are no reliable signals that a reversal is about to occur. Depending on whether Gold breaks below the aforementioned support at $1,266 and on the US Non-farm Payrolls on Friday we will likely see further drop towards the next considerable support level at $1,245, which coincides with the (MA)89 indicator on the weekly time-frame.

EUR/USD Started Falling

EUR/USD started dropping yesterday as I thought it would after forming a second doji candlestick on the four-hour time-frame below the resistance at 1.1240. What is more, the pair not only reached its target at 1.1180, but it broke below that level and now it is testing the next support level at 1.1150. The support at this level is quite strong and it remains to be seen whether the pair will break below it now, especially with the looming fundamentals that should be announced later this week. On the other hand, the pair has also formed a spinning top candlestick on the weekly time-frame, which is another strong signal for a move to the downside. A breakout below 1.1150 would lead to a further drop towards 1.1100 – 1.1080.

EUR/USD Is Consolidating

The EUR/USD range continues as it has in the past months. The pair jumped sharply to the upside with about 70 pips last Friday, after forming a hammer candlestick on the four-hour time-frame, but it could not break above the resistance at 1.1250 and it has consolidated ever since. As a result it formed several candlesticks on the same time-frame that can be interpreted as a signal that the current move to the upside is over, and the last of those candlesticks is a doji. If the signal is valid there will likely be a new drop towards the support at 1.1210, which coincides with (MA)89 on the four-hour time-frame, and a breakout below that level will probably lead to a further drop towards 1.1180.