More short-term scalping levels
As 2018 nears its close, here are some more ideas for short-term scalping opportunities in the forex and precious metals markets.
AUD/USD has held around its October low at 7023/18. This is key and holding here forms a bullish double bottom pattern in oversold conditions. Buyers could initially target 7050/70 before strong resistance at 7100/10.
However, a break below 7000 is our sell signal targeting 6975/70, 6940/35 and 6920/10.
NZD/USD has bottomed exactly at minor support at 6705/95 but below here meets strong support at 6675/65. Long positions need stops below 6645.
We have first resistance at 6710/20 and then strong resistance at 6760/70. Try short positions with stops above 6785.
EUR/JPY and EUR/USD
EUR/JPY offers a selling opportunity at 127.20/30, with stops best put above 127.55. A break higher targets 127.65/70 and quite strong resistance at 128.15/25.
If it fails to beat 127.20/30, short positions could target 126.75, 126.45 and perhaps as far as 126.20/10.
EUR/USD longs at 1.1370/60 have gained again as the pair shot higher to 1.1400/05 and 1.1430/35. We have key resistance at 1.1470/80 today. A break higher (and a weekly close above here tonight for confirmation) is a medium-term buy signal. Hold long positions, with stops put below 1.1340.
A break lower today, however, targets 1.1330 and 1.1315/10. Below 1.1300 retests the December low at 1.1270/65.
USD/CAD bulls are in full control and our targets of 1.3600/10 and 1.3630/40 have been hit. Long positions should target 1.3690/99.
Downside is limited until we see a sell signal, but we could turn at any time in what are overbought conditions. There is minor support at 1.3620/10, but below 1.3600 risks a slide to the three-week trendline support at 1.3550/40.
Gold and silver
Gold has spiked a little above the four-month trendline resistance at 1272/74 to form a small double top, but not enough to trigger stops.
Failure to hold above 1265 is another sell signal targeting 1260/59, 1255 and perhaps as far as the strong support at 1251/49 for a buying opportunity. Try long positions with stops below 1248.
There is key resistance at 1273/75. Try short positions with stops above 1280. A sustained break higher (and a weekly close above 1280 for confirmation) is a strong medium-term buy signal. Buyers should hold into January.
Silver is testing key resistance at 1520/30. Holding below 1535 turns the outlook negative. A weekly close above 1540 tonight is a medium-term buy signal. Holding below 1515 confirms a more negative outlook and risks a slide to 1500/1490 today.
Technical Analyst & Trader
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