Gold Higher

Gold is trading higher today after a disappointing US report on Friday. Jobs created came out negative 33K and this sent the US dollar sharply lower. Gold as a safe haven enjoyed a move to the upside initially with some $15.

Currently, Gold is trading at $1,288, marking a $28 move since its bottom at $1,260. If the trend catches on, more Gold bugs will get on thus pushing the price to first target at $1,315. Second major bull target is seen at $1,335 and major bull target is seen at the latest high at $1,360.

If $1,360 is taken out, then we might conclude that the bearish short-term trend is over and the new upward trend has initiated.

Silver is also posting gains as the metal is now trading at $17.09, up from a low of $16.35.

Chart: XAU/USD H4

EUR/USD Bounced Off Two Fib Levels

The EUR/USD pair saw a significant reaction by the market on Friday when the US released mixed results on the economy. Jobs created was a negative 33, while wages growth turned out to be higher than expected - 0.5% vs 0.3%.

This divergence in the economy initially boosted the US dollar while sending Gold and Silver in the red. However, after a few hours, the trend turned and the US started the depreciation process. EUR/USD touched upon both the long-term Fibonacci and the short-term Fibonacci levels, which happen to coincide in the 1.1698 to 1.1678 range. The long term downward Fib level is the 38.2%, while the short-term upward level is 23.6%.

EUR/USD is seeing optimism from the market going as high as 1.1747, currently trading at 1.1742. The pair might continue to trade higher if the Fed does not move in December, as analysts are predicting that the rate hike is in the bag to be used before year end.

Chart: EUR/USD H4

AUD/USD Supported by Bulls

The AUD/USD pair was trading to the downside for quite a while going from 0.8120 to a low of 0.77851. Immediately after touching the lowest low, bulls took control and the pair sky rocketed to a high of 0.7875. Main trend on the short-term has shifted from bearish to bullish.

Today's NFP and Jobs data will give an indication where the US dollar is headed and this could result in either a boost to sustain current AUD/USD direction or a push down to prior lower levels.

Whatever the case, until then the pair remains bullish with big potential to the upside. Major bull target is seen around 0.8150 while major bear target is seen at 0.7650.

The pair has been on its uptrend for most of the year as the move up started mid-May and since then bulls have been in charge.

Chart: AUD/USD H4

USD/CHF Rejected at Resistance

After another attempt to break the resistance, the USD/CHF pair was rejected at the level of 0.9765. Multiple attempts have been made by the bulls to break the resistance level but not a single one of them was successful.

Currently, price is trading around 0.9750 which is still close to breaking the highest high of 0.9780 but also falls below the resistance which give bears the advantage of stronger momentum.

Friday's NFP and Jobs data will leave an impact on the pair and that will give us a hint where the price is headed next. Until then, market sentiment remains bullish with price printing higher highs and higher lows.

Chart: USD/CHF H4

Silver Climbs Up

Silver is currently trading at 16.74, up from 16.53 yesterday when it exited the lower trendline on the four hour chart. Highest it went was 16.80 in the early trading hours today and then succumbed to lower levels. Price is now on the lower trendline again this time on the upper side. This indicates that bulls are still trying to bring it up and recover the upper trend.

Should they be successful, we will see Silver going to first bull target at 17.00, second target is seen at 17.30 and third target is seen at 17.40.

On the other hand, a failure to bring the price back will result in a second exit from the trend channel and a potential sell-off that could lead to first bear target at lowest low of 16.53. Second target is seen at 16.30 and third target is seen at 16.00.

Chart: XAG/USD H4

AUD/JPY At Support

AUD/JPY daily chart is currently at a very key point. Price has retraced back down to the ascending trendline and is showing indecision. Price from here is either going to show a break or a rejection. If we see a break then we would want to see a continuation with a break and retest for a short position.

However should we see a rejection, then we would be looking for bullish price action following Friday's Doji close. The monthly candle of September has closed showing slight selling pressure, but price is above all three monthly EMA's.

We are watching price on the daily timeframe to see if price shows a break or rejection. This week is packed with fundamentals on both sides so it would be interesting to observe how the pair react to every event.

Chart: AUD/JPY D1

DAX Rallies

The DAX analysis on the daily timeframe shows a renewed optimism to the German economy. Recently we have seen a strong bullish push after price was rejected by the daily 200EMA. This gave price the momentum to break above the descending trendline and also break through the 12375 resistance.

Price is now at the 12825 resistance. The monthly candle close for September has closed very strongly bullish and we are now looking for a break retest of the 12825 resistance for further bullish momentum.

Even the VW stock rallied after new findings that more people are involved in the emission scandal and is now trading close to 140. It appears that market participants favor the rally and are supporting it even in the hard time some of the companies face.

Chart: DAX, D1