Gold prices have plummeted this afternoon after better than expected US jobs numbers led to US dollar strength across the board. The precious metal has fallen from above $1350 to below $1325. However, we are approaching some serious key levels on a number of these dollar pairs that could well hold up the dollar strength we have seen since the 200K NFP release.
EURUSD has rallied strongly from its trendline support down at 1.2406, a level that coincides with a 61.8% fib retracement from the lows on Jan 30th and yesterday’s highs at 1.2520, as well as the 200 period moving average. After falling in line with the dollar strength EURUSD has now bounced and is looking stronger as we approach the close of the European session for the week. Cable is in a similar position with the same 61.8% fib acting as downside support and helping the pair to push from the lows. The downside level here sits at a cluster of lows as the fib level at 1.4097.
USDJPY has again benefitted from the positive reading but is holding up at the trendline resistance level on the 4 hourly chart. This is now an important level and has been tested a number of times in the last few weeks. It runs from mid highs on Jan 10th and has seen heavy US dollar downside throughout January, however on its retest it looks like a strong level that has the potential to hold at the level 110.47 give us some midterm downside.
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Too much uncertainly in the world