Technical Analysis for Precious Metals

Silver

Silver is moving between 61.8% and 76.4% Fibonacci levels of CD leg of the harmonica [Bat] pattern as seen on the provided daily chart. A pullback is needed before resuming the upside rally. Hence a potential downside corrective action is still in favor on the intraday basis based on the bearish harmonic formation appears on the secondary four-hour chart, supported by negative sign of OsMA.

The trading range for today is among the key support at 16.25 and key resistance now at 18.45.

The general trend is to the upside as far as 12.45 remains intact with targets at 19.40.

Support: 17.40, 17.35, 17.25, 17.18, 17.12
Resistance: 17.53, 17.60, 17.65, 17.72, 17.77

Recommendation: Based on the charts and explanations above our opinion is, selling silver from 17.50 targeting 16.95 and stop loss above 17.95 might be appropriate.

Gold

Gold is trapped within a very tight range, preparing for a downside correction based on facing the upper line of the ascending channel, the strong resistance around 1097.00 [161.8% Fibonacci of BC leg] for the daily bearish harmonic AB=CD pattern and the negative divergence appears on OsMA. Therefore we retain for a potential pullback over intraday basis, targeting 1069.00 before resuming the upside rally.

The trading range for today is among the key support at 1034.00 and key resistance now at 1155.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1155.00.

Support: 1085.00, 1080.00, 1074.00, 1069.00, 1066.00
Resistance: 1094.00, 1097.00, 1101.00, 1107.00, 1113.00

Recommendation: Based on the charts and explanations above our opinion is, selling gold from 1092.00 targeting 1074.00 and stop loss above 1107.00 might be appropriate.

FOREX analysis

EUR/USD

Current level-1.4818

EUR/USD is in a broad consolidation, after bottoming at 1.2331 (Oct.28,2008). Technical indicators are neutral, and trading is situated above the 50- and 200-Day SMA, currently projected at 1.4134 and 1.3523.

With the break above 1.4850 resistance, the downtrend from 1.5063 was confirmed to be completed, so there is no current trend on the 2 and 4 h. charts. Nevertheless, the bottom at 1.4623 was a test of the 50-day SMA on the daily chart and the fact, that this test failed is a signal, that the major uptrend is intact and new highs are to be expected. Intraday bias is slightly negative for 1.4777 and we expect current corrective slide from 1.4910 to be limited above that zone before next leg upwards to 1.5063. Crucial on the downside is 1.4735.

Resistance		Support
intraday	intraweek	intraday	intraweek
1.4856	1.5063	1.4777	1.4623
1.4910	1.6040	1.4735	1.4444

USD/JPY

Current level - 90.33

A short-term bottom has been set at 87.12 and a large consolidation is unfolding since. Trading is situated below the 50- and 200-day SMA, currently projected at 94.86 and 94.84

Our target at 91.30 was precisely hit and the pair reversed, breaking below 90.56 crucial support. The overall bias here is extremely negative for 89.82, en route to 88.83 with a risk-limit above 90.56.

Resistance		Support
intraday	intraweek	intraday	intraweek
90.56	92.40	89.83	89.17
91.30	97.79	88.83	83.53

GBP/USD

Current level- 1.6501

The pair is in a downtrend after peaking at 1.7042. Trading is situated above the 50- and 200-day SMA, currently projected at 1.6454 and 1.5258.

Yesterday's uptrend broke through 1.6530 dynamic resistance and peaked few pips below 1.6604 high. Current intraday bias is negative, aiming at 1.6438 and a break there will target 1.6250 main support zone. We are rather neutral here, due to the trendless dynamics in the 1.6250-6605 zone. A break above 1.6604 will confirm a bullish set-up on the pair, towards 1.6752 and beyond.

Resistance		Support
intraday	intraweek	intraday	intraweek
1.6545	1.6752	1.6438	1.6250
1.6604	1.7042	1.6250	1.5706

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