Yesterday Gold, like many other pairs started out with bearish intentions but finished off with a more bullish attitude. Gold fell to a daily low of 1589.30 prior to Fed Chairman Bernanke's speech in the US and rose dramatically immediately after to form a Daily Pin Bar
Gold is sitting on a solid support level at 1600 and many have speculated that gold is undervalued for some time. As investors clamor to more risk averse options, Gold becomes one of the best options. The previous low from January at 1655.60 will likely be the first real hurdle gold will face on the way up as it coincides with the 62EMA. Next, the weekly pivot at 1644.70 and 200EMA at 1654.50 will offer further resistance.
If yesterday's low is broken we expect to see this pair fall back to 1554.50 or slightly lower before once again finding support and reversing. long term picture is very Bullish for this pair, and most traders are just waiting for an opportunity like this one...will it payoff? We hope so!