The markets have been quite interesting over the last 24 hours as the middle east has seen an alliance between Egypt, Saudi Arabia and the UAE over Qatar and it's claims of funding terrorism. This has seen tensions rise in this volatile part of the world and markets have started to get that worried again as a result; no surprise was the fact that commodities as a result have jumped. Further adding pressure to this is the ongoing US political issues which keep arising over Trump and his handling of the FBI and Department of Justice, all of which are likely to drag on for some time. One of the key movers in all of this thus far has been Gold which is starting to look very interesting as a result.

The major reason gold has become so appetising to traders out there, is the recent technical movements it has been under. Traders will be aware of the long term bearish trend line that has been in play for some time on the daily. Movements today have seen the new candle jump above that level and we could see either a sharp movement higher with a breakout or a pushback through and below the trend line. One other possibility, with some of the recent low volatility, is the market may look to treat it as support and look to hold the ground it has gained. In the event we do see gold look to move higher I would expect 1292 and 1307 to be likely candidates for strong resistance, with the 1300 level being a strong psychological level for gold to cross.

The Australian dollar has shown some strong volatility with the market opening as company operating profits lifted 6.0 q/q and ANZ Job Advertisements m/m were up 0.4% which was stronger than many had expected. Recently markets have been hammering the AUD as the economy has been under pressure, so traders were positive about the results and the expectation that further news may be positive in the coming week with GDP on the horizon and also the all important Rate Statement due out today. Where some will certainly be looking for some positive words and expectations around when we could potentially see further rate rises.

For the AUDUSD moving across the charts, the bears have been in control for some time now. But recently we have seen some strong support at 0.7343 and a resurgence in the AUDUSD. This in part I feel has been caused by USD weakness more than anything else, but the positive Aussie economic spin is now pushing it higher and the recent touch of resistance at 0.7498 was not a strong pullback. Further movements higher could be on the cards as a result, and I would be watching that level closely to see if traders make another run and try and get to resistance at 0.7568.

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