Market Forecast for 08-21-12

XAUUSD-Gold and EURUSD are close to resistance breakout points. Conversely, the S&P500 is at the 100% extension resistance level as measured from its last up thrust, so you may want to pare back longs and look for a pullback or a reversal around here or possibly a bit higher to the upper trend-line in red, since this is getting into the season time-frame for a top. In fact, I believe it was this same week back in august 1987 when the market topped. We know what happened 55 days later. See daily charts for Euro, Gold and S&P500 below.

eurusd daily chart
Euro Daily Chart

gold xauusd daily chart with analysis
Gold Daily Chart

sp500 daily chart
S&P500 Daily Chart

The USDCHF currency pair, on the other hand, is close to support which, if broken, would likely be a nice short trade.

ACTION for the above markets: Use the dawn levels as breakout entries and for the long and short targets. See Euro-Swiss daily chart below.

usdchf daily chart
USDCHF Daily Chart

EURAUD and EURCAD are currently LONG from our prior buy recommendations.

ACTION:  Keep stops and targets as listed on our last post.

Please leave us your comments and +1's below if you found this market report helpful.

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