A bearish chart pattern signals a potential drop in the price of gold.
The head and shoulders top can be identified with the left shoulder taking shape on 10/14, the head is located at 11/9, and the right shoulder at 11/23. A break below the rising neck line would signal a completion of the reversal pattern with a potential move of $100 from the breach below the neck line.
Today’s economic events:
CHF – KOF Economic Barometer – 10:30 GMT
Expectations: 2.09. Previous: 2.17.
The Swiss franc has slipped against the dollar as the USD/CHF is trading back above 1.00. Further gains may be booked should the KOF report come in below expectations. Traders should be targeting the 50% retracement from the August to October move at 1.0040, followed by the 61.8% retracement at 1.0175.
Support for the EUR/USD comes in at 1.3080, the 50% retracement level for the June to September move. Resistance is found at 1.3360, the 61.8% retracement for the June to September move.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
