GOLD: Sixth Successive Week of Gains for Gold
- Gold's strength continued this week, despite small loses Friday.
- Up over +1.6% for the week, gold has delivered gains in excess of 8% for the week.
- For the year gold is up +43% marking one of the best years in several decades.
- Gold jewelry sales in India are set to drop during the upcoming festival season, as record bullion prices push buyers toward less costly alternatives in one of the world’s largest markets. Demand for ornaments is likely to drop by as much as 27% from a year ago in volume terms during the three-week buying period, according to Surendra Mehta, national secretary at the India Bullion and Jewelers Association. (per BBG)
- Gold's rally in September has taking it to overbought territory for the first time since the trade war uncertainty of April drove the precious metal higher.
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BOBL TECHS: (U5) Gains Considered Corrective
- RES 4: 117.710 High Aug 5 and a key resistance
- RES 3: 117.640 High Aug 7
- RES 2: 117.470 50-day EMA
- RES 1: 117.430 Intraday high
- PRICE: 117.400 @ 05:59 BST Aug 27
- SUP 1: 116.950 Low Aug 15
- SUP 2: 116.840 1.00 proj of the Jun 13 - Jul 11 - 22 price swing
- SUP 3: 116.800 Low Mar 17 (cont)
- SUP 4: 116.637 76.4% retracement of the Mar 6 - Apr 7 bull leg (cont)
Bobl futures have recovered from their recent lows. However, a bearish theme remains intact. A strong sell-off on Aug 15 highlights a bearish threat and moving average studies are in a bear-mode position. The contract has pierced support at 116.970, the Jul 25 low and a bear trigger. A clear breach of this level would set the scene for an extension towards 116.840, a Fibonacci projection. Key short-term resistance is 117.470, the 50-day EMA.
EURUSD TECHS: Monitoring Pivot Support At The 50-Day EMA
- RES 4: 1.1851 High Sep 10 2021
- RES 3: 1.1829 High Jul 01 and the bull trigger
- RES 2: 1.1789 High Jul 24
- RES 1: 1.1743 High Aug 22
- PRICE: 1.1616 @ 06:10 BST Aug 27
- SUP 1: 1.1599/1.1528 50-day EMA / Low Aug 5
- SUP 2: 1.1392 Low Aug 1 and bear trigger
- SUP 3: 1.1373 Low Jun 10
- SUP 4: 1.1313 Low May 30
The trend set-up in EURUSD remains bullish and short-term weakness is for now considered corrective. However, the pair is trading just ahead of a key support at the 50-day EMA, at 1.1599. A clear break of the average would signal scope for a deeper retracement and potentially expose key M/T support at 1.1392, the Aug 1 low. For bulls, a stronger resumption of gains would open key resistance and the bull trigger at 1.1829, the Jul 1 high.
BUND TECHS: (U5) Resistance Remains Intact
- RES 4: 130.26 High Aug 8
- RES 3: 130.06 High Aug 14
- RES 2: 129.78 50-day EMA
- RES 1: 129.55 High Aug 21 and 22
- PRICE: 129.45 @ 05:49 BST Aug 27
- SUP 1: 128.64 Low Aug 15
- SUP 2: 128.40 Low Apr 9
- SUP 3: 128.19 Low Mar 27 (cont)
- SUP 4: 127.83 76.4% retracement of the Mar 11 - Apr 7 bull leg (cont)
Bund futures continue to trade above their recent lows. A bear threat remains present. The contract recently breached 128.84, the Jul 25 low and a bear trigger. Note that the 129.00 handle represents the base of a broad range. A clear range breakout would strengthen a bearish theme. This would open 128.40 initially, the Apr 9 low. Strength above the 50-day EMA of 129.78, is required to signal a reversal.
