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
Gold
Bearish
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
Bullish
More View more
Real Time News
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @JMcQueenFX here: https://t.co/WjU4oYpmf7 https://t.co/VcNnCjm0B2
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/AiLoS7DrEQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/HicBmGrokK
  • 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/5lbyBJeeA7
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/ubLimoYAcr
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/4cRhRCiv3C
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/PY2YyH4vkQ
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/z2qB9p8IgX
  • A proxy of #EmergingMarket capital flows hit its lowest since July, falling with the #SP500 after some divergence This is as #USD gained against its developing FX counterparts, highlighting potential risk of a spillover outwards Stay tuned for next week's #ASEAN fundy outlook! https://t.co/kAvpnb0EXO
  • 4 consecutive down weeks for the #SP500, last matched over a year ago #Fed balance sheet continues to gain very cautiously, now at its highest since the middle of June. Still, at slower pace than last week Focus shifts to US fiscal stimulus next week in the House of Reps https://t.co/f8zpSILm86
Gold and Silver Break Higher As US Dollar Dips, Oil Testing Resistance

Gold and Silver Break Higher As US Dollar Dips, Oil Testing Resistance

2014-02-17 10:06:00
David de Ferranti, Currency Analyst
Share:

Talking Points

  • Gold and Silver Continue Gains As The US Dollar Weakens Further
  • Resurgence in Risk Aversion May Prompt Return To The Greenback
  • Crude Oil Encounters Meaningful Resistance Amidst Broader Uptrend

Gold and silver continue to power higher as the precious metals space benefits further from broad-based US Dollar weakness. Crude oil has also found strength in early Asian trading as a general drift higher in risk assets has bolstered the growth-sensitive commodity.

The US Dollar has likely weakened as safe-haven demand for the reserve currency ebbs on abating concerns surrounding emerging markets. However, if we see a resurgence of risk aversion in the market, we may yet see traders return to the greenback, which would in turn weaken gold and silver.

The question remains – what will prompt a revival of risk aversion? Looking at the economic calendar several upcoming events are noteworthy, including the January FOMC meeting minutes. An aura of complacency surrounding “pro-taper” talk from Fed officials may be put to the test if the minutes reflect a decidedly less dovish disposition.

A souring of investor sentiment would also likely weaken demand for crude oil, as buyers may retreat on concerns about the pace of future US economic growth. However, aside from risk trends, physical supply and demand factors have also played meaningful role in driving crude higher. If cold weather conditions continue to contribute to a drawdown in distillate inventories (suggesting higher demand), WTI may be remain relatively well supported.

The Speculative Sentiment Index is suggesting a mixed bias for Gold.

CRUDE OIL TECHNICAL ANALYSIS The uptrend highlighted in recent reports persists and earlier reversal signals have shown little follow through. A break above noteworthy resistance at $101.40 (the 50% Fib retracement level) would open up the $103.43 mark.

Gold_and_Silver_Break_Higher_As_US_Dollar_Dips_Oil_Testing_Resistance_body_Picture_4.png, Gold and Silver Break Higher As US Dollar Dips, Oil Testing Resistance

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS The bullish technical bias provided in recent reports has continued to play out with the uptrend in gold continuing. There appears to be little indication of a reversal from any candlestick patterns at this stage. However, with prices having moved significantly away from their 20 SMA, it suggests the gains may be overextended.

Gold_and_Silver_Break_Higher_As_US_Dollar_Dips_Oil_Testing_Resistance_body_Picture_3.png, Gold and Silver Break Higher As US Dollar Dips, Oil Testing Resistance

Daily Chart - Created Using FXCM Marketscope 2.0

SILVER TECHNICAL ANALYSIS Silver has finally broken the trading range that kept prices contained between 19.00 and 20.48. With an uptrend having emerged, the upside is favored from a technical standpoint with noteworthy resistance resting at the psychologically significant $22.00 mark.

Gold_and_Silver_Break_Higher_As_US_Dollar_Dips_Oil_Testing_Resistance_body_Picture_2.png, Gold and Silver Break Higher As US Dollar Dips, Oil Testing Resistance

Daily Chart - Created Using FXCM Marketscope 2.0

COPPER TECHNICAL ANALYSIS The short term trend has appeared to shift to the upside for copper, with prices moving above the 20 SMA and the rate of change indicator moving into positive territory. However, nearby resistance at the 50% Fib retracement level of $3.30 appears to be restraining further gains and may leave limited upside potential.

Gold_and_Silver_Break_Higher_As_US_Dollar_Dips_Oil_Testing_Resistance_body_Picture_1.png, Gold and Silver Break Higher As US Dollar Dips, Oil Testing Resistance

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by David de Ferranti, Market Analyst, FXCM Australia

To receive David’sanalysis directly via email, please sign up here

Contact and follow David on Twitter: @DaviddeFe

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

DISCLOSURES