Gold Moved Sharply to the Upside Today

After a week of sideways consolidation during which Gold formed several spinning top candlesticks on the four-hour time-frame and as well as one on the weekly time frame, all above the support at $1,125, today the precious metal sharply moved to the upside and reached the resistance at $1,150, which coincides with the (MA)89 indicator on the four-hour time-frame. Gold quickly bounced off that level, forming a spectacular shooting star candlestick on the same time-frame. The question now is whether it will continue moving to the upside. Considering the shooting star candlestick on the four-hour time-frame it’s very likely to continue retracing towards $1,135 - $1,130 for now. A new move north will be confirmed only if Gold breaks above the aforementioned resistance at $1,150.

NZD/USD Will Likely Continue Falling

First of all, Merry Christmas to all my readers!

Those of you who do intend to trade this week might want to turn your attention to the NZD/USD pair  - although many currency pairs have been consolidating sideways for the past week or so NZD/USD is one of the major exceptions to that rule. The pair has been moving to the downside for the past two weeks, after forming an obvious doji candlestick on the weekly time-frame below the resistance at 0.7180. Once the market opens again tomorrow the pair will likely continue moving to the downside towards the support at 0.6800. That said, even considering how bearish NZD/USD is there likely wouldn’t be large daily movements until the end of the week.

GBP/USD Is Falling despite the Holiday Cheer

Although today is 23^rd December and the volatility of many currency pairs has decreased significantly, GBP/USD appears to be as active as ever. Yesterday the pair broke below the previous low at 1.2300 and continued moving to the downside. Currently the pair is testing the support at 1.2260 and so far at least there is no indication that it will bounce off that level. If GBP/USD remains as active between the holidays it could continue falling towards the next obvious target at 1.2200. A breakout below that level could lead to a further move to the downside towards the previous low at 1.2080, but it is highly unlikely to break below that level too before the end of the year.