Currencies and Gold Projections

Week of January 27 - EUR/GBP - USD/JPY - XAU/USD.

EUR/GBP

The EUR/GBP has held a downward trend since finding the range high on August 12, 2019 at 0.93117. Following this trend the EUR/GBP found the range low at 0.83359. Leading into a slight hallway of sideways consolidation approaching the 2020 year. If market trends hold the EUR/GBP will move to retest the range low at 083359. If the EUR/GBP is able to move above established resistance level 0.84461 then the EUR/GBP will move to retest historical resistance level 0.85176. Shown in Chart A.

USD/JPY

With the USD/JPY holding a hallway of sideways consolidation since October 11, 2019 the USD/JPY moved to test above this range on January 10, 2020 until finally unable to hold volatility on January 20, 2020. If the market downward trend hold the USD/JPY will move to test historical resistance level 108.019 with slight resistance at 108.433. If the USD/JPY can move and maintain above resistance level 109.626 then the USD/JPY will move to test historically established resistance level 110.888. Shown in Chart B.

XAU/USD

The XAU/USD has been plagued with a growing pattern of sideways consolidation since August 6, 2020. While finding the range high on September 5, 2020 the range low did not appear until November 11, 2019. With low volatility pushing before the 2020 year the XAU/USD did not have enough to push past the range high. With high volatility entering the 2020 year the XAU/USD moved to maintain above established range high and resistance level 1550.93. The XAU/USD tested and maintained below resistance level 1550.93 from January 10, 2020 until January 15, 2020. If the XAU/USD can continue to maintain above the previous range high and resistance level 1550.93 the XAU/USD will move to find higher highs. If the XAU/USD is unable to maintain above 1550.93 the XAU/USD will move to retest resistance levels in the previous hallway of sideways consolidation the XAU/USD moved out of. Shown in Chart C.

*Charts are created with TradingView, our partner in charting.
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Written by Nenad Jordanoski, Futures Trader and Technical Analyst.
Email: nj@thetrade.academy
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