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Daily Market Report – Gold can sellers take the lead again? July 20, 2017

By Mexgroup.com

GOLD rejected by major resistance

Price retreats and resumes the yesterday’s minor bearish candle, wasn’t able to close above a major resistance area and now is going down. Continues to move sideways, so we are not 100% certain that will resume the downward movement, but technically is somehow expected to drop further  because is trapped below a major resistance area.

Could drop much deeper if the US dollar index will have enough energy to climb in the upcoming period, the yellow metal slipped below the $1239 per ounce and could fall even below the 1200 psychological level if the USDX will jump above the 96.00 level again.


Price found strong resistance at the upper median line (UML) of the major descending pitchfork and now has turned to the downside again. Failed to close above this obstacle, signalling an exhaustion, but another leg lower will be confirmed only after a valid breakdown below the ascending sliding parallel line (SL).

I’ve said in the previous analysis that the rate remains under pressure and maintains a bearish perspective as long as is trading below the UML and within the minor descending pitchfork’s body. A retest of the upper median line (uml) of the minor descending pitchfork will bring us a very good selling opportunity on the short term.

We’ll have a clear direction once we’ll have a valid breakout from the range between the 23.6% and 50% retracement level, but a rejection here, followed by a drop below the SL will send the rate much below the 50% retracement level in the upcoming period.

A buying opportunity will appear only if the rate will jump and will stabilize above the UML, outside the minor descending pitchfork’s body and above the 23.6% retracement level, this scenario will take shape only if the USDX will slide further.

EUR/JPY upside uncertain post BOJ

Price increased a little in the morning, but continues to trade right above a crucial support area, a breakdown below 128.30 will confirm a further drop in the upcoming period.


Price dropped after the impressive rally and now is retesting the upper median line (UML) of the major ascending pitchfork, the median line (ml) of the ascending pitchfork and the 38.2% retracement level. The perspective remains bullish as long as is trading above these levels, but a valid breakdown will attract more sellers, which will drive the rate towards the median line (ML) of the major ascending pitchfork.

NZD/USD overbought?

The currency pair reached new highs in the yesterday’s session when jumped above the 0.7375 static resistance,  but the bulls look exhausted.


Looks to overbought to climb much higher because has started to make some big upside shadows, has closed much below the 0.7375 major static resistance, a failure to close above this upside obstacle will signal a reversal on the short term.

Could develop a Rising Wedge pattern on the short term because has found strong resistance at the up sloping red line. A large decrease will come only after a valid breakdown below the WL4.

By Olimpiu Tuns

Market Analyst

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About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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