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Commodities Brief: Gold bears salivating at downside potential post $1,500 crack

FXstreet.com (Barcelona) - Gold suffered what only could be interpreted as a concerted attempt by large banking institutions to confirm what had been feared for quite some weeks now, that is, gold entering a medium-term bear market.

As Sean Lee, founder at FXWW, notes: "Hedge funds were the big sellers on Friday, bailing out of longer-term long positions once the price broke below $1515." Sean sees this trend consolidating in the next few months, calling for $1250 as downside target.

In our daily supply/demand analysis, we observe how the "the epic Friday sell-off has now opened the doors to a much larger decline potential... with no major demand level faced until 1432/10, which gives the gold substantial room to keep falling."

The report adds: "Sellers will have to drill down to lower timeframes to spot the most likely areas where the smart money may re-enter the market again. Depending on the profit margin sought after, 1507/1500 is a first 'level on top of level' quality supply."

Forex: AUD/USD finishes the week up 1.24%, again fails to take out resistance at 1.0600

The AUD/USD finished the NY session down 32 pips at 1.0508. The pair still notched an impressive week (+1.24%), particularly given the lack luster economic data released which showed the unemployment rate at a 3 year high (5.6%). Earlier in the week the pair traded as high as 1.0582 but once again failed to take out critical resistance at 1.0600. Currently, the pair is up 3 pips at 1.0510 during early Asia trade.
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Forex: EUR/JPY winning streak ends, closes down 176 pips at 129.03

The EUR/JPY traded sharply lower on Friday, closing down 176 pips at 129.03. Previously, the pair had traded higher the last 6 days and still closed the week +1.69%. Market participants will be awaiting Bank of Japan Governor Kuroda’s speech (due out later in the session at 1:30 GMT). Economic data out of Europe will be light with Trade Balance being reported at 9:00 GMT.
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