The EURUSD pair fell during the course of the session on Tuesday, as we continue to grind our way down in this market. In fact, we got below the 1.07 handle, and as a result we are clear to go down to the 1.06 handle.
Dithering by the FED, coupled with associated weakness in the US dollar have both combined to provide gold bugs with some much needed good news in the last couple of week, with gold rising Lazarus like from its trough of despondency in the $1110 per ounce region, to positively sparkle at the $1190 per ounce.
The GBPUSD pair initially tried to rally but then turned back around to form a rather negative candle.
The GBPUSD pair fell significantly during the session on Monday, but turned back around to form a large hammer. With this, it looks like we are trying to break out to the upside but there is a significant amount of resistance at the 1.55 handle.
Whenever I put the proverbial pen to paper and start to write about gold, I can already hear the chorus of dissenting voices from those traders and investors who only view their beloved metal as bullish, and can never accept the reality of what is actually happening on the chart.
For oil traders and speculators the summer months continue to deliver stellar trading opportunities, and whilst equity investors are wringing their hands, the WTI contract shows no signs of wanting to reverse just yet.
For gold investors and gold bugs, the current malaise in the price of gold is both relentless and remorseless with each minor rally promptly engulfed by a wave of heavy selling. As someone wrote a few weeks ago, gold bugs consider the market to be functioning correctly when the price of gold is rising, and incorrectly when the market is falling.
The GBP/USD pair had a fairly negative session on Wednesday, as the world continues to run toward safety asset such as the US dollar.
The GBPUSD pair broke down significantly during the session on Tuesday, slicing through the 1.55 handle.
The People’s Bank of China, China’s central bank,(FXI, quote) has injected 50 billion yuan (US$8.2 billion) into the money market through open market operations, it announced on Tuesday.
