COMMODS: Gold And EUR/USD Update

  • Philadelphia Fed Manufacturing Index (Jan) 17.0 exp 3.8.
  • Core Retail Sales (MoM) (Dec) 0.7% exp 0.5%.
  • USD reverses to the upside.


There has been a reversal in the bearishness in the USD this afternoon after core retail sales and the Philadelphia manufacturing index both improved.

Core retail sales came in at 0.7% vs the expected result of 0.5% for December which includes the vital Christmas period. Philadelphia Fed Manufacturing Index for January smashed expectations and recorded a reading of 17.0 vs exp 3.8 prev 2.4.

Technical Analysis


Gold has pushed lower to break the soft trendline (only two touches) on the hourly chart below. The red $1557/oz resistance level has great historical importance and it seems that it has worked again. On the downside, the next support could be close to $1550/oz. The RSI has also dipped below the 50 mid-point which is also a bearish signal. Lastly, we should get a better idea of risk appetite when Wall Street opens soon.



EUR/USD has formed a nice pattern on the hourly chart below and a break in either direction will give us a lot of clues about the price moving forward. Now that price has rejected off the top of the channel, the 1.1146 level will now be in focus, but no lower high lower low pattern has been created. 

Beyond that 1.1126 is the next level on the downside to watch. Following that, the channel low is the next support.