Gold – Gold moved higher to the 1295.50 resistance level as we expected in our 28th August 2014 Market Outlook after price rejected the 1282.50 support level which is also the neckline of the double bottom formation. Traders who went long as we recommended should have taken profits at the 1295.50 resistance level. We are likely going to see price make a short term retracement before moving higher and if price breaks through the 1295.50 resistance level, we might then see price continue this bullish move to the next resistance level at 1305.50.
Aussie Dollar – AUD/USD is slowly building up its strength as it broke its double bottom formation neckline. However there’s is a resistance level at 0.9373 sitting just above the neckline breakout point. Price will need to break through this 0.9373 resistance level in order to move higher. If price fail to break through this resistance level, the double bottom will be invalid setup for longs. Traders may consider going long at the break of 0.9373 resistance level as we are likely going to see price move higher to the next key resistance level at 0.9461 if price successfully break through the current 0.9373 resistance level.
Kiwi Dollar – NZD/USD on the other hand is showing signs of bearishness as price rejected the 0.8400 key resistance level. Given that the overall long term trend is still bearish, we could see price fall lower from here and retest the previous low or even the 0.8260 support level if the bears continue to be in control. Traders may consider selling short at this 0.8400 key resistance level to join this strong bearish trend.