We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
Wall Street
More View more
Real Time News
  • (#ASEAN Fundy Weekly) The US #Dollar appears to be back on the offensive against ASEAN FX such as the Singapore Dollar and Malaysian #Ringgit. The Philippine Peso gained. What does #USD face from here? $USDSGD $USDPHP $USDMYR $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/04/06/US-Dollar-Back-on-the-Offensive-USDSGD-USDPHP-USDMYR-USDIDR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/8CKptvL6Uz
  • This thread 😂 https://t.co/9nek6fXA1t
  • This is the best one of the thread. https://t.co/dXGZZVzww7
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/ZzbHAVT6RE
  • LIVE IN 30 MIN: In this session, Currency Analyst @ZabelinDimitri will analyze the cross-asset impact of geopolitical risks affecting markets in the week ahead. https://www.dailyfx.com/webinars/146770987
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/jdzRaFJnaa
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.20% Gold: 0.06% Oil - US Crude: -3.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GqKRXlbHQc
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.42% 🇳🇿NZD: 0.30% 🇪🇺EUR: 0.07% 🇨🇭CHF: -0.04% 🇬🇧GBP: -0.24% 🇯🇵JPY: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6yhR5FFtZw
  • LIVE NOW: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.10%, while traders in US 500 are at opposite extremes with 68.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gvtwxfEvLB
Gold Price Reaches Rally Resistance

Gold Price Reaches Rally Resistance

2016-06-09 13:05:00
Walker England, Forex Trading Instructor

Talking Points

  • Gold prices touch resistance at 1,263.87
  • Bullish breakouts expose 2016 highs at 1,303.62
  • Sentiment readings flip, with SSI set at -1.10

Gold Prices are set to close lower today after failing to breakout higher above a critical point of resistance. As you can see in the graph below, resistance currently stands at 1,263.87. This point has been identified by measuring a 61.8% retracement between the May 2016 high 1,303.62 and the May 2016 Low at 1,199.55. If prices fail to break above resistance, it opens up the possibility that Gold prices may again decline back towards 1,199.55. This decline in price would have series implications, as it would suggest a return to Golds multiyear downtrend.

Looking for additional trade ideas for Gold? Check out our Gold Trading Guide

Gold Daily Chart

Gold Price Reaches Rally Resistance

(Created using Marketscope 2.0 Charts)

Alternatively if prices breakout above this 61.8% retracement, it opens Gold prices to testing other key values of resistance. This includes the psychological 1,300 handle and the previously mentioned May high at 1,303.62. These points are critical for Gold bulls as they are still technically considered a lower high when compared the January 2015 high found at 1,307.49. For any long term rallies to continue, prices must convincingly breakout and trade above this value.

Gold Price Reaches Rally Resistance

Why and how do we use SSI in trading? View our video and download the free indicator here

SSI (speculative sentiment index) for Gold (Ticker XAU/USD) stands at -1.10 with 52% of positioning long. It is worth noting that SSI has flipped negative from last weeks and yesterday’s trading. When positioning flips from net long to net short, it may be an indication of a changing trend. If Gold prices continue to rise, traders should look for SSI to move towards a negative extreme of -2.0 or more. Alternatively, if prices pause at resistance and turn lower, traders should watch for SSI to flip back towards a positive value.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Do you know the biggest mistake traders make? More importantly, do you know how to overcome the biggest mistake? Read page 8 of the Traits of Successful Traders Guide to find out [free registration required].

Contact and Follow Walker on Twitter @WEnglandFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.