Filed Under:
Talking Points

  • Gold takes out key support level
  • USD/JPY records new multi-year high
  • AUD/USD approaching important cyclical pivot
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Foreign Exchange Price & Time at a Glance:

Price & Time Analysis: USD/JPY

pt_dec_20_body_Picture_3.png, Price & Time: Gold - Now What?Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/JPY traded to its highest level since October 2008 early on Friday
  • Our near-term trend bias remains positive on the rate while over 101.85
  • The 100% extension of the September/October decline at 104.55 is important resistance
  • A cycle turn window is seen late next week
  • Only a daily close below 101.85 would turn us negative on USD/JPY
USD/JPY Strategy: Favor the long side while over 101.85.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

USD/JPY

*101.85

102.90

104.45

*104.55

105.10

Price & Time Analysis: AUD/USD

pt_dec_20_body_Picture_2.png, Price & Time: Gold - Now What?Charts Created using Marketscope – Prepared by Kristian Kerr

  • AUD/USD fell to its lowest level in over three years on Thursday
  • Our near-term trend bias is lower in the Aussie while below .8960
  • A Gann level related to the year’s high at .8800 is key support with a daily close below needed to prolong the decline
  • A medium-term cycle turn window is seen early next week
  • Traction over .8960 will turn us positive on the Aussie
AUD/USD Strategy: Favor the short side while under .8960.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

AUD/USD

0.8760

*0.8800

0.8860

0.8915

*0.8960

Focus Chart of the Day: GOLD

pt_dec_20_body_Picture_1.png, Price & Time: Gold - Now What?Gold broke and closed below the key 1219 level on Thursday. This move eliminated the positive cyclicality from December 2nd. Given the rather tepid advance off that low we suspected the key pivot would get tested. Focus is now on the year’s low at 1180 ahead of major support near 1155. As for cycles, there is little in the way of turn windows until the end of the month when a Gann 90-day “death cycle” will open the door to a potential reversal. Only a move through the 2x1 Gann angle line of the August high at 1253 would signal the metal has bottomed earlier than expected.

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