27 Jun 2013
Gold collapses to $1,200/oz; AUD/USD falls further
FXstreet.com (San Francisco) - After testing the $1220 level several times in Thursday session, the XAU/USD has collapsed around $30 in the last hour to break down the $1,200 level and trade as low as $1,198.90, the lowest level since early 2011.
The XAU/USD's downside momentum is pretty intense as the pair's collapsed could be attributed to short covering. Currently the XAU/USD is at $1,200.80, 2.36% down on the day and 7.06% negative on the current week.
Above the $1,200 level and as long this area is intact, the long-awaited bullish bounce scenario will continue to be valid. However, as DailyFX's analyst Ilya Spivak said in a recent interview: "trying to pick a bottom is almost never a good idea."
Ilya commented that "trying to buy gold here would amount to an attempt at capturing a short-term bounce in an otherwise aggressive downtrend, which seems counterproductive. Rather, it makes more sense to look at recoveries as opportunities to sell."
The AUD/USD
As for the commodity pair, the AUD/USD is currently trading lower and after losing all of today's advances, it's trading around 0.9270, 0.1% down on the day. Short term perspective is strongly bearish according to the FXstreet.com trend index in the 15-minute chart.
Indicators such as MACD, CCI and Momentum are pointing to the south while the Stochastic is neutral in the 15 minute timeframe too.
Ilya commented about the AUD dovishness, that it's all about the Fed. "On balance, the FOMC seems determined to reduce asset purchases, so the question again is not whether common bloc currencies will fall further vs. USD, but how quickly."
Supports are at 0.9260, 0.9245 and 0.9235.
The XAU/USD's downside momentum is pretty intense as the pair's collapsed could be attributed to short covering. Currently the XAU/USD is at $1,200.80, 2.36% down on the day and 7.06% negative on the current week.
Above the $1,200 level and as long this area is intact, the long-awaited bullish bounce scenario will continue to be valid. However, as DailyFX's analyst Ilya Spivak said in a recent interview: "trying to pick a bottom is almost never a good idea."
Ilya commented that "trying to buy gold here would amount to an attempt at capturing a short-term bounce in an otherwise aggressive downtrend, which seems counterproductive. Rather, it makes more sense to look at recoveries as opportunities to sell."
The AUD/USD
As for the commodity pair, the AUD/USD is currently trading lower and after losing all of today's advances, it's trading around 0.9270, 0.1% down on the day. Short term perspective is strongly bearish according to the FXstreet.com trend index in the 15-minute chart.
Indicators such as MACD, CCI and Momentum are pointing to the south while the Stochastic is neutral in the 15 minute timeframe too.
Ilya commented about the AUD dovishness, that it's all about the Fed. "On balance, the FOMC seems determined to reduce asset purchases, so the question again is not whether common bloc currencies will fall further vs. USD, but how quickly."
Supports are at 0.9260, 0.9245 and 0.9235.