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Thursday, March 28, 2024

“Buy The Dip” In Gold; BofAML Says EURUSD Bounces Should Be Sold

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

“Gold is consolidating before its larger bull trend resumes,” notes BofAML’s MacNeil Curry looking for a move to $1345 and beyond. But it is today’s modest bounce in EURUSD that they believe should be sold, and “seen as temporary and corrective of the larger bear trend.”

Via BofAML,

€/$ is correcting. Bounces should be sold.

€/$ is correcting higher.

 However, this bounce should be seen as temporary and corrective of the larger bear trend. Look for topping into the 1.1325/1.1559 zone (old channel support, now resistance) before the larger downtrend resumes.

The initial target is 1.1000, ahead of the Sep’03 low at 1.0765. Our long-term targets are 1.0588/1.0283 (secular channel support and Elliott Wave swing target). We look for greater signs of a base into here, not before. Bulls need a break of 1.1876 (old Jun’10 low) to indicate medium-term basing, while a break off 1.2235 (200m MA) is needed to confirm a turn in the medium- and long-term bull trends, neither of which is expected.

*  *  *

Gold consolidates before higher

Gold has been caught in a 4-day consolidation. While there is risk of a deeper pullback, weakness should be limited to the 1267/1253 area (old channel resistance, the Oct-21 high and 200d avg.). Into here, we look for a resumption of the larger bull trend toward the 1345 Jul’14 high and potentially beyond.

Buy dips. 

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