$GOLD Nears Critical Support @ 74.50 | #Gold $XAU

Friends,

Predictive/forecasting model is bearish on GOLD, having defined significant R/S levels as follows:

1 - Strongest resistance within the 80.94/81.63 range
2 - Moderate support with reversal potential at 74.50
3 - Strong support with break-thru risk at 74.04

Also, model defines the following conditional targets, provided breach of 74.04:

1 - TG-1 = 69.31 - 16 MAY 14: Moderate probability of reversal if reached. Consider reversal to 74.04/74.50 range

and

2 - TG- = 64.64 - 16 MAY14: Moderate probability of reversal

A lower target also exists at this point, pending development of conditions defined above.

Just as the current (bearish) COPPER price may relate to the financial chart of SCCO company, the current price of the metal may impact this GOLD company.

The relevant part to Forex would play out through correlations, such that we might see a decline in the price of gold, silver and copper bearing down on commodity-tethered pairs, such as AUD, $NZD, CAD, and indirectly on $EURUSD. Inversely, these changes may buoy USDollar index and its Forex pairs.


OVERALL:

Directional bias is both bearish on basis of predictive/forecasting model and this trader's technical interpretation.

Cheers,


David Alcindor