It’s been a period of pause and reflection for equity markets, following the picture perfect price action of August, as the up elevator finally reached the next level, rolling gently over into the current phase of price congestion.
Gold has continued to remain heavily under pressure once again in today’s gold trading session, with the bears in full cry, as the precious metal moved relentlessly lower to trade at $1238.70 on the December contract at time of writing.
In a post several days ago, I described the recent price action for the major US indices as perhaps the most elegant we have ever seen, arching higher through August and into early September before reaching a plateau.
For gold bugs, yesterday’s gold trading session was another of those which promised much but delivered little, as the precious metal attempted to rally early in the session, before the weight of selling pressure overwhelmed the beleaguered bulls once more. The pattern for gold is now becoming remorseless and repetitive, with bearish sentiment now dominating, and as each rally comes and goes, the metal moves ever lower on the longer
As US markets returned to work yesterday after the long Labor day weekend, and an even longer summer, trading for gold started with a bang.
There are so many trading maxims it’s often hard to ignore them, but there are two that spring to mind considering the daily chart for the Emini NQ this morning.
The GBPUSD pair rose slightly during the session on Monday, but found the 1.68 level resistive. This was an area of support previously, so the fact that we did not break above there is in fact interesting.
Cable moved lower once again last week as a resurgent US dollar continued to drive the pair, with the September futures contract closing at 1.6770 on the daily chart.
Price action on the major US indices yesterday could best be described in one word, indecision, with all of the Emini futures closing with a doji candle of one variant or another.
The Canadian dollar has continued to come under heavy selling pressure once again today, driven by a resurgent US dollar, which has now broken through the key 81.30 level on the daily chart of the dollar index, to move firmly higher from this platform of support which is now in place.
