Summary:
- Gold launched the week lower on the back of G20 optimism
- Coffee keeps moving higher and the price still has some room to extend gains
- EURPLN breaks out of the consolidation range
Gold started the week with a downward price gap. This was due to the improvement of moods following the G20 summit, where Donald Trump and Xi expressed their willingness to continue discussions on the trade agreement. Investors are eagerly looking at riskier assets, likestocks, and push their prices higher. In spite of this week’s decline, the situation on gold market is unchanged and the upward trend structure is still in force. We are observing the largest downward correction since April 2019 at the moment. The key support can be found at the $1360 handle, where one can find the range of the largest correction since August 2018. A break below this hurdle would be a signal for the sellers and may trigger a deeper decline. Until that happens, uptrend remains valid.
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Source: xStation5Looking at the EURPLN chart, one can see that the last week was marked with a significant drop. The pair is trading at the lowest level since the beginning of the year. Currently, we are observing a demand reaction to the support level marked by the peak from March 2018 (4.24). An upward correction may be on the cards, but one should be aware that the main trend is downward and opening long positions is a risky play. A break back above the resistance zone at 4.2700 handle would invalidate the bearish setup.
Source: xStation5An upward move on the coffee market has been extended into a new week. The main trend is still downward, but the past few weeks have shown that buyers are ready to step in a deliver bigger correction. The previous two correction moves were of similar scale and the ongoing correction still has some room in case it is to match that scale. Such a scenario would take the price to the 118 cents handle, where one can also find local lows from 2017. Apart from that, a 50% Fibo level can be found nearby and it may additionally boost significance of the resistance level. Key support remains unchanged in the vicinity of 96.30 handle.
Source: xStation5
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