GOLD: With GOLD returning above its resistance at the 1,693.95 level, its Oct 17’2011 high and closing strongly higher the past week, risk of further strength is now expected.In such a case, the 1,786.70 level, its Sept 22’2011 high will come as the next upside target with a turn above there opening the door for a move higher towards the 1,800 level, its psycho level. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, on any pullbacks, the 1,693.95 level violated the past week will come in as the initial support. We expect a reversal of roles as support to occur at this level and then turn the pair higher. However, a breach of the 1,693.95 level could see the commodity weakening further towards the 1,595.75 level and then the 1,532.90 level, its Sept’2011 low. All in all, Gold maintains a nearer term upside risk having taken out the 1,693.95 level

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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