Weekly Price & Time: Critical Test Coming Up For Gold

Talking Points

• EUR/USD rebounds off key long-term Fibo
• USD/JPY breakout
• Key cycle turn window for Gold

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Weekly Foreign Exchange Price & Time at a Glance:

Weekly Price & Time Analysis: EUR/USD

Charts Created using Marketscope – Prepared by Kristian Kerr

• EUR/USD touched its lowest level in almost nine months this week before rebounding off the 50% retracement of the 2013/2014 advance near 1.3370
• Our broader bias is negative in the euro while under 1.3595
• Weakness under 1.3370 exposes the next major downside attraction at 1.3295
• An important turn window is eyed next week
• A weekly close back over 1.3595 would turn us positive on the exchange rate

Weekly EUR/USD Strategy: We like selling on strength over the next few weeks.

Weekly Price & Time Analysis: USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

• USD/JPY traded to its highest level since early April this week
• Our broader bias is now positive on the exchange rate
• A close over the 61.8% retracement of the April/May decline near 102.85 is needed as further confirmation that a more serious move higher is underway
• A minor cycle turn window is eyed later next week
• Only weakness below 101.05 will turn us negative again on the exchange rate

Weekly USD/JPY Strategy: Covered tactical shorts on move through 102.25. Now looking to buy on weakness while over 101.05.

Weekly Price & Time Analysis: GOLD

Charts Created using Marketscope – Prepared by Kristian Kerr

• XAU/USD came under further pressure this past week to trade at its lowest level since mid-June
• Our broader bias is negative on the metal while under 1305
• The 1280/60 area is a key downside pivot with weakness below this zone needed to set off a more important decline
• An important turn window is eyed around the middle of next week
• A move back through 1321 on a daily close basis would turn us positive again on the metal

Weekly XAU/USD Strategy: Square here. Like buying the metal on a move through 1305.

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--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved

To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX