News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/UncdNbcmXm
  • Pfizer and AstraZeneca vaccines are reportedly under accelerated UK reviews
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.27%, while traders in NZD/USD are at opposite extremes with 67.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BqQRr6AbEp
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/7DvvoE4tpz
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.41% Gold: 0.22% Oil - US Crude: 0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/NgqT0tF7BZ
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.14% 🇯🇵JPY: 0.13% 🇦🇺AUD: 0.10% 🇳🇿NZD: 0.02% 🇪🇺EUR: -0.06% 🇨🇭CHF: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BthsDnzheC
  • 🇮🇹 Inflation Rate YoY Prel (OCT) Actual: -0.3% Expected: -0.4% Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-10-30
  • 💶 Inflation Rate YoY Flash (OCT) Actual: -0.3% Expected: -0.3% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-10-30
  • 💶 Unemployment Rate (SEP) Actual: 8.3% Expected: 8.3% Previous: 8.3% https://www.dailyfx.com/economic-calendar#2020-10-30
  • 💶 Core Inflation Rate YoY Flash (OCT) Actual: 0.2% Expected: 0.2% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-10-30
Gold Respects Resistance - Sell Off Coming?

Gold Respects Resistance - Sell Off Coming?

2011-12-21 15:28:00
Jeremy Wagner, CEWA-M, Head of Education
Share:

Gold Respects Resistance - Sell Off Coming?

Gold has been technically and fundamentally supported for several years. The technical patterns are beginning to break down which could mean the shiny metal has the potential to sell off from current levels.

A break below 1532 would confirm a new downtrend and offer a trader an entry to sell.

Gold_Respects_Resistance_-_Sell_Off_Coming_body_Picture_1.png, Gold Respects Resistance - Sell Off Coming?

(Created using FXCM’s Marketscope 2.0 charts)

Last week, Gold broke below the 40 week moving average for the first time since January 2009. This technical indicator is watched by many large institutions to give clues about trend direction.

Gold_Respects_Resistance_-_Sell_Off_Coming_body_Picture_2.png, Gold Respects Resistance - Sell Off Coming?

(Created using FXCM’s Marketscope 2.0 charts)

Additionally, Gold broke below the 200 Day Simple Moving Average last week which is another technically bearish sign. Earlier today, gold pierced the 200 SMA from the bottom side and immediately turned lower. This respect for these important moving averages indicates the appetite for owning gold at these prices is waning.

Therefore, we’ll look for technical reasons to sell gold. Since the low of late September 2011 is 1532, place an entry to sell 1 point below at 1531. Prices trading to these levels will indicate that prices are trading at levels not seen in 5 months which also indicates technical weakness. Place a stop just above a recent swing high on a break below 1531.

Additional Resources

Professional Trader’s Best Friend: Trends

Trading with Moving Averages

How to Trade with Moving Averages

Trading Breakouts

---Written by Jeremy Wagner, Lead Trading Instructor, DailyFX Education

To contact Jeremy, email jwagner@dailyfx.com. Follow me on Twitter at @JWagnerFXTrader.

To be added to Jeremy’s e-mail distribution list, send an email with the subject line “Distribution List” to jwagner@dailyfx.com.

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

DISCLOSURES