“Gold is consolidating before its larger bull trend resumes,” notes BofAML’s MacNeil Curry looking for a move to $1345 and beyond. But it is today’s modest bounce in EURUSD that they believe should be sold, and “seen as temporary and corrective of the larger bear trend.”
€/$ is correcting. Bounces should be sold.
€/$ is correcting higher.
However, this bounce should be seen as temporary and corrective of the larger bear trend. Look for topping into the 1.1325/1.1559 zone (old channel support, now resistance) before the larger downtrend resumes.
The initial target is 1.1000, ahead of the Sep’03 low at 1.0765. Our long-term targets are 1.0588/1.0283 (secular channel support and Elliott Wave swing target). We look for greater signs of a base into here, not before. Bulls need a break of 1.1876 (old Jun’10 low) to indicate medium-term basing, while a break off 1.2235 (200m MA) is needed to confirm a turn in the medium- and long-term bull trends, neither of which is expected.
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Gold consolidates before higher
Gold has been caught in a 4-day consolidation. While there is risk of a deeper pullback, weakness should be limited to the 1267/1253 area (old channel resistance, the Oct-21 high and 200d avg.). Into here, we look for a resumption of the larger bull trend toward the 1345 Jul’14 high and potentially beyond.
Source: Zero Hedge