However, for the upside to prevail, the precious metal will have to break out above the 1967 level.
Above here, the next key resistance is near the 2026 price point.
For the moment, it looks to be that the gold rally is taking a pause.
The precious metal is posting its first proper correction in nearly three months.
Gold is down over 3.5% intraday after it broke out from the rising price channel.
The support area near the 1967 handle has also given way. The current declines could see prices extending lower.
Euro Pulls Back From Two Year Highs.
The euro currency broke the support level near 1.1750 on Monday. This came after last Friday saw price action testing this area.
If resistance forms near 1.1750 then we expect to see a continuation lower. The next main trend line is, however, likely to act as support in the near term.
But we see a possible decline to 1.1600 level of support which is the next key target for EURUSD.
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The current 1H formation on GBPJPY hints to a simple zigzag pattern consisting of primary sub-waves Ⓐ-Ⓑ-Ⓒ. Learn while you earn. Invest! DM me for more info
With Germany & France entering deep recessionary territories amid the COVID crisis, euro area economies are bound to remain in contraction. Economists expect the preliminary flash estimates to get even worse, despite having seen the sharpest declines in decades.
The golden cross is a technical chart pattern indicating the POTENTIAL (I stress that Word) for a major rally.
The golden cross appears on a chart when a stock's short-term moving average crosses above its long-term moving average.
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