AFAAQ FX CONSULTANT

Where Is Gold Going From Here? #GoldTradingTips

2022-06-04T19:38:00.001+05:00

After briefly reaching highs above $2,000, gold has fallen to $1,785 (-14%) following the deep selling in the U.S. major indexes throughout most of April and May 2022.

Interpretation Of Current Consolidation In Gold

My team and I see the recent lows in gold as similar to the April/May 2009 consolidation after the global financial crisis. It is also similar to the January 2013 consolidation before an extended 34% price decline took place – ending in December 2015.
The primary difference between now and then is that the Federal Reserve is currently initiating a new round of Quantitative Tightening (QT), raising rates, while battling Inflation. In both the previous examples, the Federal Reserve was moving aggressively into Quantitative Easing, attempting to aid in the recovery of the U.S. and the global economies.
It seems to me, that the underlying factors driving the price of gold have drastically changed. All it would take for gold to break into a new trend, up or down, would be to see some new catalyst or contagion event come to life.
Gold Weekly Chart.

Gold Establishes New Momentum Base, While USD Rallied 15.75%

The strength of gold over the past 15+ months while combating the strength of the U.S. dollar has been impressive. I’ve shared my thoughts in many interviews over the past year, suggesting gold was in a consolidation range (moving downward), while still holding up impressively as the U.S. dollar continued to skyrocket higher.
Trends in the U.S. dollar and gold, I believe, are directly related to underlying global economic factors. These factors are prompting a shift away from traditional growth sectors and pushing traders to reconsider the safety of precious metals. Another factor is that the Federal Reserve has been actively telegraphing rate increases for nearly 12+ months as Inflation started to surge in early 2021.
I see the extended consolidation in gold over the past 15+ months, above $1,700, as a new momentum base for the price – similar to what happened in 2009 and 2013. The next question is “will it break upward or downward?”

Plan A vs. Plan B For Gold Throughout 2022

I like to consider trading to take high probability opportunities within confirmed/defined trends. The smartest move for gold traders right now is to wait for any future price confirmation before trying to guess which direction it will move.

Plan A

Watch the $1,775 level as critical support.
Consider the current bullish price trend as neutral if any daily close breaks below $1,775.
If the price recovers above $1,775 after moving lower, adjust to a potential bullish price trend for gold.

Plan B

Watch the $1,735 level as critical support.
Consider the current bullish trend as continued bearish if any daily close breaks below $1,680.
If the price breaks to below $1,735, do not attempt to 'bottom-pick.
These Plan A and Plan B constructs are how I think of trading in general. It is not worth trying to guess where the price may go or if I’m missing out on some opportunity. Risking 5% or 10% of my capital on a guess is just not worth it to me. I could be wrong in my guess multiple times trying to chase an emotional belief that a bottom or top is setting up. This, in turn, could destroy 25% to 40% of my trading capital in the process.

Falling Back To Long-Term Technical Analysis As A Guide

I created this chart in early 2021 highlighting my cycle expectations for gold over the next 3+ years. Throughout most of 2021 and into early 2022, I expected gold to trend downward – reaching a low price near $1,625 sometime near February-May 2022. The recent low in gold on May 16, 2022, was $1,785. Prior to that, gold reached a low of $1,676.70 on March 8, 2021.
Although my $1,625 level has not been reached yet, I am eagerly waiting for the next phase of my prediction – the potential rally wave that should start in June 2022 or soon after. This next rally phase may target $2,000~$2,050, then stall for many months before continuing to trend higher, targeting $2,400+.
Long-Term Gold Chart.
Patience is the key to all trading and long-term success. Knowing there are opportunities for very short-term trades every day is fantastic if that is your style. I prefer to trade longer-term swing trades, protecting my capital and trading the most efficient setups.
In my opinion, the best opportunity for gold traders is to wait for price confirmation of my predicted cycles. Once this happens, then look for opportunities when we know gold has exited this consolidation phase.

Gold is Trading within no man's land .... Complete analysis study for next week

2022-05-22T11:46:00.003+05:00

Gold's general commentary: Taking the strong downtrend on DX into consideration, Gold is extending it’s ranged candles, showcasing the strong underlying Bearish trend . With the Bond Yields currently Trading on red candles and the DX rejected on the Weekly High’s (above #103.600 Resistance) on U.S. opening, I would like to note that Gold is consolidating on the Lower High's trendline of the Ascending Channel and as one can see on the historic aspect, it resembles the last Lower High's zone and ready to turn downwards yet again, as on Medium-term (final destination of Bearish cycle) March’s #1,678.80 Double Bottom should reject the Price-action, which is a tough nut to crack for Medium-term Investors. This validates it even more. More specifically with #1,836.80 as the Hourly 4 chart’s Support, if it breaks I am expecting an aggressive Gap fill at #1,807.80 within #2 sessions. The Daily chart turned Bearish sessions ago and can Support the speculative Technical downtrend, where I announced on multiple occasions that I expect #1752.80 or less within early June's fractal . This #2 sessions horizon coincides with the release of the U.S. High Impact news, so all the parameters Support a speculative downtrend on Gold amplified by a strong upswing on DX trending upwards. Remember, whenever Fundamental dust / pressure settles, Gold will experience aggressive takedown as DX is sole reason why Gold is Trading on recent gains.

Technical analysis: Gold broke the #1,837.80 Hourly 4 chart’s former Resistance, however #1,852.80 barrier is stalling the uptrend and I am now expecting a test of the Hourly 4 chart first Support zone of #1,821.80 - #1,827.80 (before #1,807.80 and #1,800.80 barrier). With the catalysts of the next week reporting later on, I can see consolidation within #1,810.80 - #1,820.80 before a bigger proportion move later into the week. With the DX on recovery candles (# +0.16%) and Bond Yields (# +0.57%) staying rather weak without rebounding, the underlying trend is currently Bearish regarding Short-term. Hourly 4 chart has been on Lower High’s since yesterday’s session and a breakout on current levels formed an Ascending Channel . DX touched #102.90 again, forming a very Bullish Fundamental outlook for Gold . Keep in mind that on a Daily basis (June #14 fractal resemblance) Gold is still on straight #1 - #2 Bearish week's in general and there is still time even for the current Monthly candle to close in losses. Gold shows High durability on a near new Intra-day High’s but there are certain aspects that make me sceptical on whether or not this can be sustainable.

Fundamental analysis: Gold is Trading under strong Buying pressure from DX on one of the strongest Intra-day declines since #Q4, which Naturally attracted Gold’s Buyers skyrocketing the Price-action almost #23 points within just few Hours. Regardless, there is nothing more attached and confirming the upside momentum on Gold as I doubt that it will continue when DX engages the rebound and eases the Buying pressure on Gold . In addition to that, Bond Yields had reversed Intra-day and are near a #2-session High. Usd-Jpy pair is also near the #2-session Support. Based on the above, Gold shouldn’t be above it’s #1,852.80 Short-term Resistance (psychological barrier), but yet again (with mixed signals on various instruments), not aswell below #1,800.80 barrier on the other side. The RSI both on the Daily chart , but mostly on Hourly 4 chart is idle at it’s best. However, with the further Fed developments and always changing tightening speculations (adding Volatility almost on Hourly basis, visible on every candle), I won't be surprised to see a very negative week on Bond Yields, which would be Bullish-wise for Gold (only if #1,852.80 breaks) and pause the Medium-term fair Technical downtrend extension. If #1,852.80 holds also throughout today’s U.S. session, Buying bias is invalidated. My advice would be to wait for the right opportunity to add Selling orders and that's definitely not now ahead of U.S. session opening. I will keep operating with Selling orders indicating elemental Selling trend (giving more probabilities to the downside), and will update if a good opportunity arises on the other hand. Yet again, I will be extra careful with my next order as Traders witnessed how Fundamentals ( DX ) can momentarily distort Technical trends with violent spikes, which could be disastrous for one’s capital.

AUD-USD will fall once again as per shown on chart ... Sell

2022-05-21T19:26:00.002+05:00

Hello,Traders!
AUD-USD is retesting a resistance cluster
Which makes me bearish biased on the pair
And as we are already seeing some bearish price action
I think that the next move will be downwards
To retest the target level below
Sell!
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HOW TO DRAW A PITCHFORKS ON CHART | FOREX TECHNICAL ANALYSIS |

2021-03-17T02:23:00.004+05:00

WHAT IS ANDREW’S PITCHFORK?

Pitchforks were developed by Dr. Alan Andrews as a basic trend tool that identifies price channels and gives structure to a market advance or decline. These trendlines offer reaction zones and offer a guidance in both price and time.

EUR/NZD chart showing a pitchfork

WHAT IS A MEDIAN-LINE?

A median line is simply the bisector of a given channel or range. The median-line of a pitchfork often offers a point of reference and may trigger inflections or pivots in price. If a price breaks above the median-line, the target shifts to the upper parallel – likewise if price breaks below the median-line, the target shifts to the lower parallel.

EUR/NZD chart showing a parallels within a pitchfork

Consider the same chart above. A pitchfork can be applied by using the three reference points of the most recent low-high-low into the 2016 open (blue arrows), offering an up-trend to work with. As often will be the case, the slope is IDENTICAL to the previous slope derived off the subsequent April high- meaning this formation would have alerted us much earlier to where the April rally ultimately found resistance.

Note that on each subsequent rally, the advance reversed off the median-line with the final attempt in August ultimately pulling back into the lower parallel. This simple drill is meant to highlight that identifying the proper gradient, more-so than the tool used, is the most important aspect of slope analysis- obviously the earlier the better

Some important aspects to keep in mind when drawing pitchforks:

In an up-trend: reference points should be a low-high-low. In a down-trend: reference points should be high-low-high
When price approaches the median line, they will:
Reverse, or
Price will trade through the median line and head for the upper / lower median line parallels
Stress the Slope, not the reference points: When applying pitchforks, the most important thing is the slope that’s produced- Has price been responding to that slope? Have we seen pivots / reactions at the touch points? These are the factors that should be considering before operating off any given trendline. That said, there will be times you will need to adjust your reference points secondary lows/highs in order to fit the gradient more accurately.
Once price has broken out of the formation- look to identify a new pitchfork in the opposite direction. If price breaks the lower parallel of an ascending slope- Look for a near-term high-low-high as reference points for the correction lower. If price breaks the upper parallel of a descending pitchfork - look for a low-high-low to offer the up-slope on the reversal.
Once you have clearly identified a slope, parallels extending off key highs and lows will often times offer clear pivots in price and will be levels of interest for both targets and entries. It’s also worth noting that median-lines will be of added technical significance when they converge on other key technical indicators such as moving averages, Fibonacci levels, monthly / yearly highs and lows and sentiment.

KEY TAKEAWAYS ON PITCHFORKS AND MEDIAN LINES

Pitchforks can be extremely useful in identifying key reaction levels within market trends and once mastered, can be a crucial part of your trading strategy. Always keep in mind that the primary focus is to give structure to the market and better locate points of interest for trade opportunities.

In part three of the series, our article on Multi Time Frame Analysis discusses combining pitchforks with various overlay indicators. This can help in identifying opportunities in both price and time to offer a more holistic trading approach.

Introduction to Basic Trendline Analysis

2021-03-17T02:15:00.001+05:00

In this series we will piece together the anatomy of a swing trade and discuss the tools along with the methodology used to construct a basic trade setup. While no one single strategy is perfect, these best practices can be utilized in conjunction with your own trading strategy to identify more favorable entry / exit points in trending market environments.

Trendlines are the simplest and single most important (and largely underutilized) tool in your trading arsenal. Extending a line off key highs & lows in price is an objective way of assessing the gradient or slope of a trending market. This key step can help identify where the price is likely to find support (floor) or resistance (ceiling).

DXY DAILY PRICE CHART
Note that trendline analysis can be viewed as more of an art form than a science as it requires some form of subjectivity. That said, when drawing trendlines, the more touch points the market has, the stronger conviction the slope offers. This means that the reaction off the trendline (slope) becomes increasingly effective.
In the example of the U.S. Dollar Index, the positive slope casts a bullish outlook, with the broad game plan to buy as price trends higher. So where should our entry point be? A pullback into trendline support would be the most favorable entry

With the same respect, a break often offers sharper and more significant reversals. Once a trendline support is broken, the slope now becomes resistance for prices, and often foreshadows a change in market behavior. This slope can now be seen as a reference of invalidation for the current move lower.

AUD/NZD DAILY PRICE CHART

Likewise, a breach above a trendline resistance sees that line as support for the subsequent move higher. The AUD/NZD example above shows how a single trendline can offer plays on both sides of the spectrum as support & resistance. Once the slope broke in December, if offered clear resistance on the subsequent rally in early 2015 before moving lower. Likewise, the breach above in June fueled a rally higher, which inevitably found support back at that same trendline.

KEY TAKEAWAYS ON TRENDLINE ANALYSIS

Some important aspects to keep in mind when drawing trendlines:

Two points is speculative, three points confirms- It’s important to note that any two reference points can offer a trendline- however it’s the third touch point that confirms the validity of the slope. Therefore before relying too heavily on a given gradient, look for that third touchpoint for conviction.

Assessing the break- You should always be trading under the assumption the trendline will hold- but when trying to ascertain whether price is actually breaking, one of the most important things to consider is timeframe. As a rule of thumb, I’ll typically look for a daily close to confirm or invalidate the break of a given trendline. However, when utilizing shorter time-frames price action will be the biggest tell- look for a reaction / change in behavior at the break with a pullback & retest of the slope as support/resistance to validate the break. We will discuss multi-timeframe analysis in more detail in part 3 of this series.

A break of a trendline should fuel acceleration- When a slope is broken as resistance or support, the subsequent move should see prices follow through in the direction of the break. If prices break and fail to accelerate in that direction, often times this will be a sign of a ‘false break’ scenario (also known as a ‘throw-over’). These exhaustion trades are typical in mature trends and can often precede key reversals in price.

Don’t chase the break- The way you will want to trade the breach of a trendline is to wait for a pullback in price to test the slope as support – your stop will be below this low. Likewise, on a break of support, wait for the market to retest the trendline as resistance- That pivot high will be your stop on the short.

This fundamental use of trendlines is constant across slope analysis and is the basis of the methodology. In part two we’ll introduce Pitchfork and medina-line analysis to help identify favorable targets (areas of support / resistance) within the context of a given trend.

EURUSD Looks Bullish upto 1.23000

2021-01-25T11:59:00.001+05:00

EURUSD rebounds from Demand zone 1.2050 strongly and currentrly trading on 1.2175 .... looks solid bullish upto 1.2300 ... more buying on dips arrond 1.2100 for target 1.2300 with stop loss below 1.2050 zone. #Eurusd #ForexSignals #onlineforextrading #Tradeoftheday #marketOverview #Tradingsignals

Youtube Seo Tips and Tricks 2020 | How to Seo Youtube Videos in 2020 |

2020-05-16T12:36:00.001+05:00

How to Seo Youtube Videos in 2020. in Todays topic we will learn Youtube Seo Tips and Tricks 2020 to get more views on our videos.

INTRODUCTION OF HARMONIC PATTERNS IN URDU/HINDI | HARMONIC PATTERNS TUTORIALS IN URDU/HINDI

2020-05-10T15:37:00.003+05:00

This is the 1st Tutorials of Our Harmonic Patterns Series, In this Videos we will learn about the "Introduction of Harmonic Series" and in the the upcoming videos we will learn about the Harmonic Patterns one by one ... in this video you will learn about how to use Fibonacci Retracement Indicator With RSI

Video Link Below

https://youtu.be/d7v6pGy_Ayo

Accumulation and Distribution in Forex Market | How Stock Manipulation o...

2020-05-08T20:36:00.001+05:00

If You are a Forex Trader then Subscribe this Channel because we are Teaching you some Special about Forex Market which makes your Trading Profitable forever.
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How Traders Loose Money in Forex Trading | Forex trading Tutorials I

2020-01-19T17:26:00.001+05:00

Learn Support and Resistance in Urdu/Hindi | How to Draw Support and Res...

2020-01-19T17:04:00.001+05:00

Time to buy gold - consolidation above $1365 will open the path to $1430

2018-02-17T16:59:00.000+05:00

GOLD

What will happen next with USD dollar, while yields curve rising amid expectations of soon Fed rate hike? Many have started talking about the dollar's reversal, and we too were inclined to this scenario, taking into account the oversold USD levels and minimums since 2014. That is why the trading day in the middle of the week - Wednesday, was so important or rather the statistical data on consumer inflation, which were published that day and set the medium-term direction for the currency and equity markets.
Data on US consumer inflation is a very important indicator, the one is primarily taken into account by the American regulator when deciding whether to raise the interest rate (along with GDP data and the labor market data). Markets believe that weak inflation is the only factor that can have a restraining effect on the Fed's plans to raise the rate at least three times in 2018.
On Wednesday, February 14, gold overcame the distance from the support level at $1325 to the annual highs set in January 2018 around $1357 mark after the release of US statistics.
Entry Point Buy above breakout of $1366, Targets 1394$ and 1430$

GOLD stop downward movement with a Hammer candle

2018-01-30T00:11:00.000+05:00

Gold ,the Yellow metal since December 2017 trading in upward trend and last week it touch 1365$ per ounce and then retrace back to 1337$ per Ounce.
where it forming hammer candle which decides the next movement of the precious metal.
Four hour Chart shows that metal again rising rates so be careful to trade in selling the metal.

our preferred trades are
Buy Above 1344
Stop Loss 1336
Target 1357 and 1365

alternate Scenario

Trade Sell below 1337
target 1326

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GOLD WEEKLY ANALYSIS 04TO 08-12-2017

2017-12-04T18:52:00.003+05:00

First week of December will take many heavy news like central bank interest rate decision, PMI and Labour rate.
it is hope that FED will hike its rate and US job data will not deter this.

GOLD H4 CHARTS SHOWS

DAILY CHART SHOWS

TRADES:
SELL BELOW 1276 TARGET 1266 AND 1258

GOLD REVERSE FROM 1296$ SHARPLY TO 1283$

2017-11-29T21:51:00.004+05:00

Today Gold reversed from 1296 top sharpely to 1282.80$ in no time after the speech of FED chair Yellen.

Possibble trade now

Buy above 1283 and 1285

Stop Loss 1277

Target 1292 and 1297

if you need any help then contact me without any hesitation
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UK POUND MAY REVERSE FROM 1.3254

2017-11-17T10:59:00.001+05:00

GBPUSD trading in uper direction since last day after the the BOE Officials comments on Normalization cycle.Speaking at the Bank of England’s Future Forum – an annual event to discuss the bank’s role in serving society - Governor Mark Carney said that while the UK’s departure from the European Union posed risks, the BOE would be ‘nimble enough’ to move monetary policy to bring inflation back to target while continuing to support the economy.

Inflation in the UK has been above target (around 2%) since February of this year as the effects of a weaker Sterling imported inflation into the UK. The central bank hiked interest rates on November by 0.25% to 0.50%, the first rate hike in a decade, in an effort to control overheating consumer price pressure. Further hikes are not expected until mid-late 2018 as the BOE continues to monitor tepid UK growth.

Possible Trades

BUY above 1.3255 SL 1.3185 TARGET 1.3380 AND 1.3435

Alternate Trade

SELL below 1.3120 SL 1.3185 TARGET 1.3030

GBPUSD HAS A BIG NEWS THIS WEEK AND WILL BE VOLATILE

2017-10-29T11:16:00.001+05:00

Upcoming week is a very busy week for Traders because of lot of news and press releases are due from BOE,BOJ,FED Meetings and NFP Data.
so that market will be volatile and lot of movement in the currency market so that be careful and save your equities.
BOE: There’s little doubt that the Bank of England will double the UK Bank Rate to 0.5% on ‘Super Thursday’ but the British Pound could fall afterwards.
FED :The US Dollar is posed to continue upward after surging to a three-month high but stalled progress on tax cuts and President Trump’s Fed Chair pick may emerge as roadblocks.
The FOMC rate decision along with a fresh batch of BoC rhetoric may fuel the near-term advance in USD/CAD as Chair Yellen and Co. appear to on course to deliver a December rate-hike.

ENTRIES TO TRADE;
Buy Above 1.3145
Stop Loss 1.3110
TARGETS 1.3190 AND 1.3225

IF MARKET BREAKS TREND LINE 1.3120 THEN

Sell at 1.3115
Stop loss 1.3140
Target 1.3070

visit my blog for more analysis and signal
www.4xtradings.blogspot.com

GREAT BRITIAN POUND have a Volatile Day 25-10-2017

2017-10-25T10:52:00.003+05:00

UK GDP data headlines the economic calendar in European trading hours. Consensus forecasts see output rising 0.3 percent in the third quarter, matching the increase in the three months to June. UK economic news-flow markedly improved relatively to analysts’ projections since mid-August however, opening the door for an upside surprise that might cement November BOE rate hike bets and boost the British Pound.

Brexit Secretary David Davis is also scheduled to appear for questioning in the House of Commons. Yesterday’s appearance by Chancellor Philip Hammond seemed to hint that a bit of common ground with EU negotiators is emerging. It will be interesting to see if that extends to the more combative Mr Davis, signaling the administration is at last coalescing around a single vision.

Today Trades

Buy above

1.3150 stop loss 1.3105

Target 1.3180 and 1.3220 and 1.3275

if UK GDP data did not comes good then

Sell below 1.3130 stop loss 1.3180

Target 1.3085 and 1.3030

GOLD 24-10-2014

2017-10-23T23:59:00.002+05:00

PRECIOUS METAL TRADES FOR NEXT 3-5 DAYS ARE

BUY ABOVE 1278

ENTRY BUY AT SL 1272 TARGETS ARE 1296 AND 1306

ALTERNATE TRADE IS

SELL BELOW 1274

ENTRY SELL AT 1272 SL 1280 TARGET 1262 AND 1256

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USDJPY 29-8-2017

2017-08-29T18:44:00.001+05:00

The net beneficiary of the move was Japanese Yen as risk aversion began to show in FX markets. While many are calling this a ‘safe-haven’ move, the more accurate description would likely be unwind. The Japanese Yen remains attractive as a funding currency for carry trades given the BoJ’s negative rate policy, and in times of duress, carry doesn’t look all that attractive anymore when the prospect of principal losses can far outstrip the return from the carry trade. This is likely why we see USD/JPY weakness in recent cases of risk aversion, as traders liquidate carry trades for fear of what might happen down the road.

This recent wave of weakness broke below a key level of the 50% Fibonacci retracement of the July-December 2016 major move. This puts USD/JPY price action within a zone of support that has held the lows in the pair since April. If this breaks, the door is opened to bearish continuation, but traders may want to steer those long-Yen setups towards other currencies, such as the British Pound

Most likely Trades

Sell Below 108.10

sl 108.60

Tp 106.95

EURUSD 25-8-2017

2017-08-25T16:11:00.000+05:00

EUR/USD short-term bullish pressures are slowing down. Down trend resistance is located at 1.1816. Hourly resistance can be found at 1.1910 (02/08/2017 high) while hourly support lies at 1.1613 (26/07/2017 low). Expected to show renewed bearish pressures.
In the longer term, the momentum is now turning largely positive. We favour a continued bullish bias. Key resistance holding at 1.1871 (24/08/2015 high) has been broken while strong support lies at 1.0341 (03/01/2017 low).

Today major event is Jackson Hole Symposium event and ECB President Mario Draghi speech and FED Chair Jennet Yellen.

CRUDE OIL IN USD

2017-08-25T15:57:00.000+05:00

Rejection at Downtrend trendline

Crude oil is trading mixed. Hourly support is given at 46.46 (17/08/2017 high). Strong resistance can be found at 50.41 (31/07/2017). Expected to show continued short-term sideways move.
In the long-term, crude oil has recovered after its sharp decline last year. However, we consider that further weakness are very likely. Strong support lies at 35.24 (05/04/2016) while resistance can now be found at 55.24 (03/01/2017 high).
Today Major event is Speech of Jannet Yellen at Jackson Hole symposium.

GOLD rejected from 1300$ handle

2017-08-20T11:35:00.001+05:00

The precious metal takes fly higher to 1300$ from bounce back 1267$ in consective three days bullish move. after touching 1300 handle gold rejected strongly and closed at 1285$.Technically we saw a shooting star candle which means that Gold will trade further in downtrend and possibly touch 1267 and 1256.
Trade Sell Gold at 1287 and 1294
sl 1300$
Tp 1274 and 1267 and 1256

Geopolitical tensions drive Gold prices near $1300

2017-08-15T01:16:00.001+05:00

Gold prices rose last week around 300 pips amid rising tensions between the United States and North Korea after the North responded to warnings from US President Donald Trump with a threat to strike the US territory of Guam. With tensions mounting between the United States and North Korea, investors have been moving into the precious metal and other safe haven trades. Gold testing 2-month peaks in levels just shy of the critical barrier at $1,300. Spot gold rose 3 per cent to $1,286 per ounce.
Volatility spread across asset classes on Thursday, as the CBOE volatility index spiked to its highest level since May, gold prices rose to two-month highs and all major U.S. equity indices closed lower, with the S&P 500 falling by 1.45 percent. The US administration is looking to seek a diplomatic resolution with North Korea and there is a notable reaction today on markets, with gold and the yen lower, equities higher, whilst US Treasury yields have also picked up.

NZDUSD 08-08-2017

2017-08-08T17:35:00.002+05:00

The New Zealand Dollar broke below trend line support guiding the move higher against its US cousin since mid-May, hinting a significant reversal is in the works. The move lower may reflect pre-positioning ahead of the upcoming RBNZ monetary policy announcement.

We are likely to Sell below 0.7395

SL 0.7450

Target 0.7230

The next layer of significant support comes in at 0.7276, the 38.2% Fibonacci Retracement. A daily close below that opens the door for a challenge of the 50% level at 0.7188. Alternatively, a move back above the 23.6% Fib at 0.7384 paves the way for a retest of the 14.6% Retracement at 0.7450.