I note the powerful surge from the $1390 level yesterday afternoon, the move extended through to test the previous high of the $1438 area, which similar to last week attracted some profit taking.
For me it is only a dollar off the previous yearly high and what i'm starting to see is RSI divergence with a lower RSI generated compared to the high from the 24th June.
The weekly RSI is still showing an overbought signal similar to levels only reached back during the gold rally of 2011.
It will be interesting to see how this plays out over the next 2 days particularly with the jobs and ISM data due today and a US holiday tomorrow (4th July). I would like to see it hold $1420 for the move to continue for a test of $1440. Failure to hold $1420 would probably open the door to $1410, then $1400 before $1380 is back on the cards.
For me it is only a dollar off the previous yearly high and what i'm starting to see is RSI divergence with a lower RSI generated compared to the high from the 24th June.
The weekly RSI is still showing an overbought signal similar to levels only reached back during the gold rally of 2011.
It will be interesting to see how this plays out over the next 2 days particularly with the jobs and ISM data due today and a US holiday tomorrow (4th July). I would like to see it hold $1420 for the move to continue for a test of $1440. Failure to hold $1420 would probably open the door to $1410, then $1400 before $1380 is back on the cards.