Gold, Crude, Euro, Aussie Plummet

By Colin Twiggs
August 12, 2008 4:00 a.m. ET (6:00 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

Gold

Spot gold broke through primary support at $850, signaling the start of a primary down-trend. The next level of support is $770.

The target for the breakout is $700. That is $850 - ($1000 - $850).

Source: Netdania

Crude Oil

West Texas Intermediate Crude is also in a strong down-trend: headed for medium-term support at $110/barrel.

The longer term target is $100, calculated as $122 - ($145 - $122).

Source: Netdania

Currencies

The euro has plunged since breaking primary support at $1.53, penetrating the next level of support at $1.50. And retracement to test the new resistance level was quickly overrun.

The calculated target is $1.46, that is $1.53 - ($1.60 - $1.53), but $1.43 is a more likely support level.

Source: Netdania

The dollar penetrated resistance at 108.50/109.00 against the yen, signaling the start of a primary up-trend. Expect a retracement to test the new support level.

The target is 120 yen — at the upper border of the long-term descending triangle.

Source: Netdania

Unwinding carry trades appear to have destabilized the Australian dollar which is weakening against both the yen and the greenback. Since breaking primary support at $0.93 the Aussie fell through the next level of support at $0.90 and has already reached the target of $0.88, calculated as $0.93 - ($0.98 - $0.93). Expect further support at $0.85. Failure would warn of a test of $0.77.

Source: Netdania

The Aussie also broke support at 100 against the yen, signaling a test of support at 96. Failure would warn of a test of primary support at 88.

Source: Netdania

Sometimes the best trades are not the winning ones that put money in your pocket; sometimes they are the ones that get you out of the market at the right time.

~ Phil Flynn

To understand my approach, please read About The Trading Diary.

	Gold, Crude, Euro, Aussie Plummet By Colin Twiggs August 12, 2008 4:00 a.m. ET (6:00 p.m. AET) These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use. Gold Spot gold broke through primary support at $850, signaling the start of a primary down-trend. The next level of support is $770. The target for the breakout is $700. That is $850 - ($1000 - $850). Source: Netdania Crude Oil West Texas Intermediate Crude is also in a strong down-trend: headed for medium-term support at $110/barrel. The longer term target is $100, calculated as $122 - ($145 - $122). Source: Netdania Currencies The euro has plunged since breaking primary support at $1.53, penetrating the next level of support at $1.50. And retracement to test the new resistance level was quickly overrun. The calculated target is $1.46, that is $1.53 - ($1.60 - $1.53), but $1.43 is a more likely support level. Source: Netdania The dollar penetrated resistance at 108.50/109.00 against the yen, signaling the start of a primary up-trend. Expect a retracement to test the new support level. The target is 120 yen — at the upper border of the long-term descending triangle. Source: Netdania Unwinding carry trades appear to have destabilized the Australian dollar which is weakening against both the yen and the greenback. Since breaking primary support at $0.93 the Aussie fell through the next level of support at $0.90 and has already reached the target of $0.88, calculated as $0.93 - ($0.98 - $0.93). Expect further support at $0.85. Failure would warn of a test of $0.77. Source: Netdania The Aussie also broke support at 100 against the yen, signaling a test of support at 96. Failure would warn of a test of primary support at 88. Source: Netdania Sometimes the best trades are not the winning ones that put money in your pocket; sometimes they are the ones that get you out of the market at the right time. ~ Phil Flynn To understand my approach, please read About The Trading Diary.	Share: A+ A− FREE 12-month subscription to The Patient Investor Get the insights you need to stay ahead in financial markets when you sign up to Incredible Charts premium service by 31 December. Start Now Incredible Charts Try our popular premium stock charting software, with proprietary trading tools and powerful stock screens. More than 420K downloads Suitable for Windows 10 & 11 Start with a 5-day Free Trial Download Premium Web Charts Premium cross-platform web charts with proprietary trading tools and powerful stock screens. No downloads or installation required. Suitable for Windows, macOS, and Linux operating systems. 5-day Free Trial Trading Diary Free education, with technical updates and macro outlook. Join Now
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