***Coronavirus fears are driving markets – cash fleeing to safe-haven currencies (CHF, JPY, USD). Stock markets down***
GOLD – XAUUSD – Daily & Weekly Charts
As suggested in our last GOLD update, price broke the daily bullish channel support area and has since been finding support around 1453. Recent price action has been bearish and has swung below the recent bullish channel. GOLD is still in a structured uptrend though – this shows clearly on both daily and weekly time-frames. The daily moving averages are tightening, signalling that upside momentum may be weakening. The weekly moving averages are bullish and widening though.
Opportunities to go long could exist around the weekly bullish moving averages and around the horizontal support levels at 1452, 1351 and 1270. A bullish move may be rejected or reverse around the moving averages, around the previous bullish channel support area (as resistance) and around the horizontal levels at 1551, 1584 and 1700.
SILVER – XAGUSD – Daily & Weekly Charts
Price was bullish and then reversed around 18.65 (as suggested in our last SILVER update). XAGUSD has since been very bearish. Price has swung below a number of key support areas and has formed a short series of lower swing highs and lower swing lows, all suggesting that SILVER could start down-trending. The daily moving averages confirm this – they have crossed bearish and are widening. Recent price action has been finding support around 12.10, suggesting that XAGUSD could start a retrace/correction move before attempting to swing lower.
Selling opportunities may exist around any of the key Fib levels, around the dynamic resistance of the moving averages, around the trend resistance area and around the horizontal levels at 14.05, 14.35, 15.95 and 16.45.
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