Forex Technical Update June 25, 2010 Gold: No Unwinding Just Yet
- Daily and 4H: Gold started the week with a sharp decline, suggesting the market may be in a bit of a correction. However, the flight to gold has not unwound this week. Instead, after a decline to 1224.50, the XAU/USD pair rallied to 1256.35.
- Note the RSI stayed above 40, and is now testing 60 at the 1256 area.
- This is also the 78.6% retracement level. If the market breaks this, along with RSI breaking above 60, it is very likely that gold will make another high above the record high near 1265.
- A swing projection suggested by a positive RSI reversal (where the RSI low is lower, but price lower remains higher), targets 1290.
Fan Yang Currency Analyst Commodity Trading Advisor
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