Early London USD demand seems to be linked to core FI markets, with Bunds leading a rally there in recent trade. No headline flow of note. EUR/USD & GBP/USD through overnight lows, but still comfortably above respective Tuesday lows.
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Gold traded sharply lower on Dec 18. The move down undermines a recent bullish theme. A resumption of weakness would signal scope for an extension towards the key support at $2536.9, the Nov 14 low. Moving average studies are in a bull mode position highlighting a medium-term uptrend and this suggests that the latest sell-off is likely a correction. Initial pivot resistance is $2640.0, the 20-day EMA. A breach of this EMA would be positive for bulls.
USDCAD bulls remain in the driver’s seat and the pair is holding on to the bulk of its recent gains. The recent breach of 1.4178, the Nov 26 high, confirmed a resumption of the uptrend and note that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4209, the 20-day EMA. A pullback would be considered corrective.