Saved by the support line

The euro managed to pull through the downward move yesterday and found the needed support at the 1.0900 level. The US GDP data was not an impressive event and the euro climbed to 1.10 thus marking a third consecutive day of gains. The price action is driven by US growth surprises and disappointments. Here's the latest US data: 

USD Gross Domestic Product (Annualized) (1Q S): -0.7% vs -0.9% estimate, 0.2% prior.

USD Core Personal Consumption Expenditure (QoQ) (1Q S): 0.8% actual vs 0.9% estimate, 0.9% prior.

The EURUSD pair looks poised to close the daily candle in green and why not even the weekly?

Chart: 4h

EURUSD in a sharp downtrend?

According to this 4h chart the EURUSD looks overbought and a continuation of the downward move is to be expected. If it breaks and closes below the 1.08881 support line then selling panic could be the expected reaction of traders and investors which could lead to further decline and a possible rest at 1.07500 - 1.06800 range.

On the other hand, a break and a close above 1.09500 would mean the beginning of a new bullish trend. 

Success tip of the day

 Is it possible to win at trading the markets? Yes. Do most of the people lose money? Yes. Then how can I profit? You must follow a strictly worked out route and you will undoubtedly reap great profits. What is expected of you is to create a definite strategy, stick to it and sit tight.

Free. Worry-free, stress-free, emotion-free. The market is there to trick you. And it will do that more often than you like. You have to do the impossible. To free yourself of emotions, of expectations and feelings. You have to be willing to take hits, to be proven wrong and to be okay with that. 

The difference between bad traders, good traders and the best traders is this – bad traders refuse to acknowledge they have made a mistake and watch their money get swiped away. Good traders close out their trade when it goes against their direction. The best traders close out the trade that is against them and open a new one. Instantaneously. You should not have any set expectations in terms of future price. You do what the tape tells you to do, otherwise you are gambling, not trading. 

Strong day for the Greenback, Gold sharply lower.

Gold solidly lower as U.S. Dollar rallies. Gold prices have fallen below the psychological level of $1200 and the yellow metal is currently trading at the range of $1186-1189. Traders and investors do not look really optimistic about Gold early this week. The early US trading session is backing up the U.S. Dollar in part due to safe-haven demand due to Greek debt crisis. With a two-week low Gold isn't shining at the moment, but a change of events with the Greek debt burden could easily ignite the spark it needs.

Interesting fact: Twenty-four-karat #gold is relatively soft and easy to break, which is why lower-purity gold is commonly used in jewellery.

Around half of all gold mined today (49%) is made into jewellery, which remains the single largest use for gold. 

#India is the world’s largest market for gold jewellery, representing about 822 tons (746 tonnes) of gold in 2010. Indian women own about 19,841 tons (18,000 tonnes) of #gold #jewellery - Source: GoldFacts.org)

Gold is currently trading at 1203.67/1204.12 oz.

#Gold is quickly making its way up. The resistance level of $1225 has been breached. The next target is $1270. Support lays at the psychological level of $1200. Charts are as follows: 1h, 4h, 1w.

‪#‎Gold‬ is at a major support zone. After it failed to regain its dominance over the US dollar, the precious metal dropped to $1170/oz and is now resting at $1190/oz. 
Chart: Weekly