COMMODITIES: Gold Trend Structure Remains Unchanged and Bullish
The trend condition in WTI futures remains bearish. Moving average studies are in a bear-mode position, highlighting a dominant downtrend. A key support and the bear trigger at $56.11, the Oct 17 low, has been breached. Clearance of this level resumes the downtrend and opens $53.77, a Fibonacci projection. Key short-term resistance to watch is $61.25, the Oct 24 high. First resistance is at $58.83, the 50- day EMA. The trend structure in Gold is unchanged, it remains bullish. The bear phase between Oct 20 - 28 appears to have been a correction and note that the recovery since Oct 28 signals the end of that corrective cycle. Key support to watch is the 50-day EMA, at $4106.7. Clearance of this EMA would signal scope for a deeper retracement. Price is approaching key resistance and the bull trigger at $4381.5, the Oct 20 high. A break resumes the primary uptrend.
- WTI Crude down $0.26 or -0.46% at $55.89
- Natural Gas down $0.01 or -0.15% at $3.9
- Gold spot down $3 or -0.07% at $4329.31
- Copper up $6.15 or +1.13% at $549.95
- Silver up $0.55 or +0.85% at $66.017
- Platinum up $1.99 or +0.1% at $1923.74
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FOREX: EURCHF Edges Further Away From 0.9200 Following False Break
- Alongside the yen, the Swiss Franc underperformed across the G10 on Tuesday, assisting EURCHF further away from the recent false break below 0.9200. Given the significance of the cluster support around this mark, the rejection and subsequent reversal bolster the argument for a stronger recovery.
- Indeed, EURCHF gains are moderately extending today, and a higher close would mark a fourth day of gains. A break above the 50-day EMA, which intersects at 0.9293, would then target downtrend resistance at 0.9334.
- While the USD index was able to momentarily recover past the Aug 01 high, USDCHF remained shy of its corresponding target. This level remains around 2% from current spot levels, at 0.8171.
- Next week’s sport event adjusted GDP will be a final reading, meaning that the domestic calendar remains light until November CPI on Dec 03. The final SNB meeting of the year is on Dec 11.
