Markets

Forex Notes 5.4.2011: Gold, Silver, AUD/USD

Gold (XAU/USD) - Gold is staying above the 1528.75correction low. It continues to lose bullish momentum, but has not shown bearish momentum, hovering above the 50% retracement of the rally from 1495 to 1575 . If the current correction is not over, it can extend lower towards 1518-1520 pivot near 61.8% retracement. However, if there is no surprising factors to support the USD from this Friday's NFP, gold should continue rallying towards a swing projection target near 1585 .

Siver (XAG/USD) - Silver saw initial reversal signs to start last week. Price action was contained below the 49.78 high, so this week's action continued the consolidation , while gold's consolidation just began. 39.70 pivot is the next support for silver. Below that we can extend this decline to the 38.00 (50% retracement of the 2011 rally from 26.45 ). Only a push above 50.00 resumes the bullish trend towards 54.80-55 .

AUD/USD - While hard commodities dominated paper currencies, the Aussie stands king within the realm of paper currencies. The AUD/USD has a positive correlation with gold and its not surprising both are making record high levels. The current correction has been soft and 1.0775 remains an important support pivot. A break below this can head towards 1.0680 pivot just above the 61.8% retracement level. The bullish continuation outlook targets 1.15 in the medium term, using a swing projection of the 2008-09 rally from the 2010 low.

Fan Yang CMT

Chief Technical Strategist

FXTimes

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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