Silver Makes a New High

Silver just posted its highest reach since January this year going as high as 18.45. Gold's little brother accumulated momentum since it hit support at 15.80 and then price reacted strongly bullish to make the highest high today.

This move comes after the initial bullish reaction post-Brexit which boosted Silver price to 18.30. Although Silver is 3.5% up today, Gold is only some $10 up or 3/4 of a percent. The reason behind the Silver rally is that bulls are trying to get to the other side, or in other words - 18.90. Once this is a fact, we might expect price to fluctuate aggressively until market participants pick a winner.

Immediate support is seen at 18.00.

Chart: XAG/USD D1

GBP/USD Recovery

GBP/USD is trading somewhat to the upside. Even though the pair is up some 250 pips since yesterday's low of 1.3110 it still looks like nothing compared to the loss suffered on Friday when the major event of the year took place. The Brexit took away 12% or 18 cents of the Sterling.

However, it appears that the Sterling bulls still have something to offer as they managed to push price to a daily high 1.3371. Although we went to more than 30-year low, it does not look as bad as some analysts portray it.

In the beginning of March the price of GBP/USD was close to 1.38. On the day of the Brexit price went from the irrational and boosted 1.50 to a low of 1.32 and recovered to 1.40 on the same day. Going long now is worth considering as we are still in the aftereffect causing unrealistic depreciation of the GB pound.

Chart: GBP/USD D1

USD/JPY Below Support

USD/JPY is trading below support since the Brexit actually happened. The pair dipped below 103.00 on the Referendum day and made a low of 98.95. Two days later the Yen has depreciated slightly and is currently trading at 102.30 with a high of 102.41 for today and 102.47 for yesterday.

Main trend remains bearish as the Yen has been regarded as safe haven among currencies. Further depreciation could also be expected due to price well below the 200SMA and also below the support line on the long-term descending channel.


Strong support is seen at 100.80. First resistance might be expected at 103.10.

Chart: USD/JPY D1

Gold 16-month High

Gold made a fabulous run on Friday after Brexit results showed 52% of the UK in favor of leaving the European Union. Traders and investors fled to safety as Gold went up with $108 thus marking a 16-month high.

This is the second largest single day gain in the history of Gold. The first one is 25 Sept 2011 when Gold went from $1,535 to $1,663 (up $128). The third largest single day gain was during the Swiss Gold Referendum on 30 Nov 2014 when Gold rose from $1,142 to $1,221 (up $79).

The precious metal was heavily influenced by the vote and now that things are somehow calm and smooth, price might retreat to lower levels.

Chart: XAU/USD D1

GBP/USD Crashed as Brexit Happened

GBP/USD lost more than 12% on Friday or talking numbers, the pair went from 1.50 to 1.32 as results showed Britons chose to leave the EU. The Sterling fell off a cliff reaching the support line from the resistance line in a few hours.

However, technical analysis once again conquered over fundamentals as price was stopped a few pips above the support line. Support even managed to turn around price as after the 30-year low it climber up covering more than 50% of the downfall.

Main trend remains bearish on the short-term and if the situation deteriorates more then we could expect further depreciation of the Sterling.

Chart: GBP/USD D1

Brexit For Britain

History is made today. The UK is no longer part of the EU. This became clear with today's Referendum results, or to put it simply 52% voted Leave while 48% voted Remain.

The results had devastating impact on the British pound which came down crashing with some 12% going from 1.50 to 1.32. All GBP pairs suffered a loss and the Euro was not spared as it went down against the US dollar from 1.1428 to 1.0911.

Gold skyrocketed with $108 from $1,250 to $1,358.

Also, a webinar was hosted yesterday by ActivTrades' guest speaker Malte Kaub who spoke about the biggest event of the year, the Brexit.

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EUR/USD Indecisive

The EUR/USD is trading slightly higher today since opening going to 1.1278. These gains come after a losing day yesterday with a low of 1.1240. The pair has been trading in a uptrend channel for quite a while now and it looks like it will keep pushing higher.

Another thing that is playing a role in the appreciation of the Euro is that the pair is trading above the 200SMA signalling a bull run.

Have in mind that the UK Referendum scheduled for Thursday will certainly have an impact on the currency market.

Chart: EUR/USD D1

EUR/JPY at Fibonacci

EUR/JPY made a new low last week going to 115.44 and then immediately recovering to make a high of 119.11 The low was last visited in December 2012 and that final low was the exact 61.80% or in other words the Golden Fibonacci ratio. 

On the other hand, price is below the 200SMA meaning it is still in a downside. Although it might look like a good opportunity to go long, it would be best to wait and see how price behaves as there is a possibility to retrace back to 115 and below.

Chart: EUR/JPY W1

Gold Posts New Losses

Gold is down 1.5% in today's session. In other words, the precious metal went from $1,294 to $1,269 today only. Although we are currently seeing some signs of recovery with price at $1,274 it is still to early to say that bears have accomplished their job.

Gold might continue going further down if the UK leaves the EU. This would drive investors to the US dollar and in turn, neglect Gold as safe haven.

On the other hand, should the UK remain in the EU we might see minor reaction in the Gold market. Either ways, pay attention to what the markets are doing this week.

Chart: XAU/USD D1

Gold Pulls Back

Gold is trading modestly lower in today's session after the 10-month high at $1,315. The precious metal dropped rapidly the same day reaching a low of $1,277, then the next day rose with some $25 making a high of $1,300.

Today, Gold is trading in the red making a low of $1,278 and currently trading at $1,281. Price is now in the short-term bearish trend which might as well be a correction while bulls are getting ready to push it further up to a new high.

Please be advised that this week will be filled with high market volatility as we have the UK Referendum scheduled for Thursday.

USD/JPY Holding Above 106

USD/JPY had a tough time holding above the key level of 106. The pair dipped to a low of 105.62 thus making a double bottom with the previous low of 105.58. Bulls were able to quickly react to this move and managed to push price above the 106 making a high for the day of 106.34.

Main trend on the long-term remains bearish but a bullish correction might be expected that could propel price to levels around 107.30-107.50. Until then, consolidation is destined to rule caused by low volumes in anticipation of market movers.

Chart: USD/JPY D1

Gold Double Top

Gold is trading relatively unchanged since yesterday's session. The Advance Retail Sales announced today were able to create some minor volatility and managed to push prices to a high of $1,290 thus making a double top.

The precious metal reacted to this level and instantly drew back to levels below $1,290. Gold is now trading at $1,281 and as it looks its ready to go down. First support is seen at $1,275.

On the other hand, first resistance is seen at 1,292 and major resistance is $1,305.

Chart: XAU/USD H4

USD/CAD New Gains

USD/CAD posted new gains in today's session. The US Advance Retail Sales turned out to be a non-event and could not create any unexpected and volatile moves. The pair sustained its main bullish course and reached a high of 1.2860. Main trend on the short-term remains bullish. A slight correction might be expected that could bring the pair down to 1.28.

On the other hand, as soon as bulls can get a break above 1.2880 then we might expect a climb to 1.31.

First support remains 1.2800 while first resistance is seen at 1.2875.

Chart: USD/CAD D1

GBP/USD High Volatility

The Sterling is witnessing high volatility in today's session reaching a low of 1.4118 and recovering to 1.4280 with a high of 1.4321. This week and the next one are going to be packed with volatility as we have the Referendum scheduled for Thursday 23th. Until then it is best not to take any big risks or wide stops as the pair is doing wide swings within the daily range.

The Referendum, also known as Brexit, will decide whether the UK is going to stay in the EU or not. Either way, just observing what the markets will do is going to be a delight.

Chart: GBP/USD H4

Gold Higher

Gold gained some $10 in today's session after opening at $1,274. The precious metal climbed to $1,281 in the early hours today and reached a high of $1,284. Gold has been in a bull run since the psychological $1,200 was reached in the end of May.

Although Gold bulls are having a good time, Gold bears don't seem to be done as they are waiting to push prices down again and as it appears, now is a good time since Gold is currently at resistance. If this level hold then we might expect a visit to lower levels again. If it doesn't, bulls need a close above $1,300.

Chart: XAU/USD H4

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USD/JPY Recovery

USD/JPY made a quick recovery after going to 106.50 on Friday. Today the pair reached a high of 107.90 and is now trading at 107.60. Should we see the US dollar gathering strength we will see the pair reach for new highs.

First support zone remains last low at 106.50 while first resistance is the level of 108.00. When we see a break of either levels, we might start making plans to go either short or long. Until then, the pair will have some time to consolidate and decide what to do next.

Chart: USD/JPY D1

Gold Posts Losses

Gold posts new losses today after major gains on Friday due to lower than expected jobs data. THe precious metal opened with a price of $1,246 and is now around $9 below at $1,237. It is still not clear whether the uptrend from Friday would continue.

Yesterday's statement of FED's Yellen gravitated towards the US strengths and how traders and investors should not put great emphasis and overreact on a single report. It appears this brought back some of the investors and the US dollar strengthened.

Chart: XAU/USD D1

USD/JPY Drops Close to Lowest Low

The pair reacted strongly to the latest US Jobs report significantly lower than expected (170k to 38k).  USD/JPY went down to 106.38, dangerously close to its lowest low at 105.54. The pair was able to post some gains today making a high of 107.44.

It is still not clearly defined where the pair is headed next so you might want to follow today's speech of Chair Janet Yellen to try and grasp some understanding where it might go from here.

Chart: USD/JPY H4

USD/CAD Immediate Support

The USD/CAD pair reached a milestone in only two days after devastating jobs report on Friday. From 170k expected to 38k actual jobs created in May. The news sent the US dollar to monthly lows against major competitors.

USD/CAD went from 1.3190 to today's low of 1.2828. The level 1.2830 acts as a good support zone which is a quick opportunity to go long with a tight stop. Should the pair break 1.28 we might expect further sell off.

Chart: USD/CAD H4

GBP/JPY Sharp Drop

GBP/JPY dropped with more than 600 pips in just two days. Yesterday the pair reached the high of 163.90 and since then it's been a downhill for the Yen. GBP/JPY reached a low of 157.33 and is now trading at 157.77.

Main trend on the short-term remains bearish with a few supports broken. Next bear target is seen at the level of 157. If this level is broken then we could expect the pair to reach prior low of 155.70.

On the other hand, a correction could be expected that would take the pair to 158.40 and then 160.

Chart: GBP/JPY H4