This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Forex, Global Market Price Action for the Week Ahead

NEW YORK (TheStreet) -- Gold's intraday correction is in place. Watch for a break in the short term.

In our 2nd Skies members' commentary last Thursday, we talked about how the key resistance short term for gold is in the 1324 area. If the precious metal rejects from here, expect a round trip back down toward 1306.

As we can see, the precious metal fell lower from a high of 1323 last week. It is now heading back to 1306.

For now, intraday we have to watch the 1303 and 1313 levels for the next major direction. While long term we are still in a down trend, medium term we are in a range with some bullish under-pinning. If 1324 folds, then the 1331 and 1341 levels will be tested.

AUDUSD: Large Range in Play, Heading Toward Range Support

Since April this year, the Aussie has been largely contained within a +230 pip range between 9200 and 9435. The pair attempted to head north outside of the range, but had three false-break setups, all leading to lower prices.

You'll notice the general tendency after the false breaks is not to consolidate. Such breaks are followed by strong selling, further cementing the two-way market, but also the presence of sellers willing to cap the upside.

For now, the pair seems as if it wants to head for the 9200 key range support before buyers step in and sellers cover their shorts. Bulls can look to play the range buying at the support, while sellers will want a daily close below this, or a weak rally to the top of the range before selling again.

Dow Jones: Engulfing Bar Followed Up by Strong Buying

As we opined in our daily commentary to end last week, we felt the price action of the major U.S. indices hinting at bottoming and should bounce from here, likely closing green on Friday. We even tweeted about this before the U.S. open on Friday.

As we can see, the Dow Jones did just that, forming a large bullish engulfing bar on Friday. Today the Dow has literally opened and climbed from the get-go, up +75 points on the day. The next major resistance comes in at 16722.

If the bounce forms a V-bottom with several bull closes taking out 16722, expect a retest of 17000 and perhaps the yearly highs as bears will likely capitulate after 16722 and wait for the yearly highs before re-entering.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.29 -0.85%
FB $107.12 2.76%
GOOG $766.64 3.20%
TSLA $237.19 3.01%
YHOO $33.71 -0.30%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs