CAD, Aussie and Gold Weekly Update - May 20 close

USDCAD

The Loonie keeps on the rise and made new highs last week, reaching the middle line of the weekly Bollinger bands with a 61.8% Fibonacci retracement, while breaking the previous week highs and rising to the daily SMA100 from which it was mildly rejected. As of now, the price has broken that level and continues heading towards the daily SMA200 presently at 0.9900 and coinciding with the weekly SMA34. I would expect further rise in extension on the double swing high towards that level (0.9880/0.9920) from where we will probably have some initial rejection back down, but I strongly believe this pair is going to look for parity very soon.

AUDUSD

The Aussie ended last week on an inside candle, rising a little from its previous retracement to the 38.2% Fibonacci level. The price went back for a retest of the broken support at 1.0700/1.0680 and has since Monday headed back down again, making a new low at 1.0440 which seems well supported at the moment. We could be going further down to break the round number 1.0400 and reach the 50% weekly retracement at around 1.0370/60 which is also near the 138.2% daily extension of the previous swing low on the daily charts. If 1.0500 holds though, I would be targeting 1.0580/1.0600 round number and last week’s highs on the daily SMA34, then the confluence of SMA100 and SMA200 in the 1.0680/1.0700 area for another retest of the previously broken support.

XAUUSD (GOLD)

Gold descent was contained at the 1470.00 level and ended last week again above the strong psychological level 1500.00, from where it has kept slowly ascending since Monday and is now trading at 1526.00. I would expect another attempt to reach the all-time highs (1570.00/80.00) and am targeting further upside towards 1620.00/1650.00 at the 138.2% and 161.8% daily extensions on the previous range of the swing low, and 127% weekly extension on the swing high. If the recent lows are broken, the bearish scenario would bring the price in extension to the 1430.00/1400.00 levels, at about the 61.8% Fibonacci retracement on weekly charts.