***This is the last post until next week. The Thanksgiving holiday is coming at the right time for me…I’ve been ‘out of tune’ with markets for the last 2 months and need a breather. Happy Thanksgiving!***
Remember the gold ‘breakout’ above the critical 1834. It was short lived and the yellow metal has been slammed lower the last few days. Focus is squarely on the slope confluence (blue lines) near 1769. That level needs to provide support in order to hold a constructive view.
USDJPY closed at its best level since March 2017. The March 2017 high is 115.50, just pips under the 61.8% retrace of the 2015-2016 decline at 115.60. Notice also the ‘stickiness’ of the area around 116 from 2014-2016. I’m wondering if this level has a memory. Bottom line, USDJPY is closing in on a zone that I’m aware of for reversal potential…115.50-116.20. This is especially interesting in light of gold nearing possible support.
1.2775 sticks out as a key USDCAD level. The level is defined by the line off of the August and September highs. It’s also the 9/29 high. Do we get there though after today’s reversal? Watch for resistance near 1.2700. If price can put in a lower high near that level, then it’s worth a shot on the short side towards 1.2500. For reference, USDCAD opened the year at 1.2721 (see below)!
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