EURUSD bulls step in at the right moment

In our last analysis we noted that EURUSD bulls needed to act immediately as price was testing the 61.8% Fibonacci retracement of the rise from 1.1107 to 1.1347. Bulls needed to see price reverse immediately in order to have hopes for more upside. The end of the week found EURUSD at new highs confirming major reversal under way.

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Red lines -wedge pattern

EURUSD is once again above the wedge pattern and has reversed its short-term trend right at the important 61.8% Fibonacci support level. Price also made a new higher high confirming our longer-term bullish view since it initially broke above the wedge pattern. EURUSD is expected to move towards 1.17 over the coming weeks and as long as price is above 1.12 bulls will remain in full control of the trend.

The material has been provided by InstaForex Company - www.instaforex.com

Weekly analysis on Gold

Gold price last week verified the importance of the $1,350-60. As we noted at our previous posts, getting rejected twice at $1,350-60 was a bearish sign, but at the same time this price action confirmed the importance of the resistance at $1,350-60 and a break out above it would be an important bullish sign.

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Blue line - major weekly resistance

Green line - major support trend line

Gold price has broken above the blue trend line resistance at $1,350-60 and has reached within two days at the $1,400 level. This is an important break out event. Gold bulls are in full control of the trend as long as price is above the blue weekly trend line resistance that was broken. This is now support. Even if we see a pull back towards $1,350 it would be considered as a buying opportunity. Bulls do not want to see the green trend line broken. On the other hand bears took a good beating last week. This break out needs a lot of work to be canceled. There are very slim hopes of this happening in my opinion. Gold price has a confirmed that it has started a new multi-week up trend.

The material has been provided by InstaForex Company - www.instaforex.com