Unfamiliar with Gann Square Root Relationships? Learn more about them here.
Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: EUR/USD
EUR/USD Strategy: We like the short side while below 1.3775.
Price & Time Analysis: USD/CHF
USD/CHF Strategy: Like the long side while over .8845.
Focus Chart of the Day: XAU/USD
The move higher in Gold since the start of the year has proven resilient. On Wednesday it briefly broke above key Fibonacci resistance at 1341 to trade at its highest level since late October. However, the metal could not hold onto these gains and settled lower on the day. This failure to gain traction over key resistance has us worried that XAU may be in the process of forming a short-term top. A Gann cycle turn window is seen next week and failure to make much headway over 1341 before then will increase risk of deeper downside correction. Under 1306 confirms a top. We should note the medium-term cyclical picture looks quite positive for the metal.
This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved.