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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
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
More View more
Real Time News
  • #Gold prices challenging key support at the 50% Fib (1763.27) as the RSI registers its most extreme oversold readings since 2018. Gut-check time for #bullion bulls... #XAUUSD https://t.co/H6EU8mN1sW
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.22% 🇬🇧GBP: 0.19% 🇨🇭CHF: 0.13% 🇪🇺EUR: 0.05% 🇦🇺AUD: 0.01% 🇨🇦CAD: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/eIxfGpBn51
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.54% US 500: -0.72% Germany 30: -0.79% France 40: -0.79% Wall Street: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/kHZ9KNcOvx
  • 🇯🇵 Housing Starts YoY (OCT) Actual: -8.3% Expected: -9.3% Previous: -9.9% https://www.dailyfx.com/economic-calendar#2020-11-30
  • Heads Up:🇯🇵 Housing Starts YoY (OCT) due at 05:00 GMT (15min) Expected: -9.3% Previous: -9.9% https://www.dailyfx.com/economic-calendar#2020-11-30
  • Learn why dividend stocks are favored by investors and why it might be the right choice for you here:https://t.co/VUsJFHBARb https://t.co/Brit0AFo8e
  • China National Offshore Oil Corp (CNOOC) plunged nearly 10% in Hong Kong on Monday after Trump Administration put it onto export blacklist alongside several other Chinese firms.
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.27% Gold: -0.86% Silver: -2.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/o4wizaAcjD
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.21% 🇯🇵JPY: 0.18% 🇨🇭CHF: 0.12% 🇪🇺EUR: 0.07% 🇦🇺AUD: 0.06% 🇨🇦CAD: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/t7tsKRwoku
  • Volatility in forex trading is a measure of the frequency and extent of changes in a currency's value. More volatility means more trading risk, but also more opportunity for traders as the price moves are larger. Learn more about volatility here: https://t.co/M04SelwdDE https://t.co/OtLcdaikP1
Weekly Technical Perspective on Gold Prices (XAU/USD)

Weekly Technical Perspective on Gold Prices (XAU/USD)

2018-09-28 16:30:00
Michael Boutros, Strategist
Share:

In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. Gold is down nearly 13% from the yearly highs with price trading just above long-term structural support heading into the close of the third quarter. Here are the key targets & invalidation levels that matter on the Gold (XAU/USD) weekly chart.Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

New to Forex Trading? Get started with this Free Beginners Guide

Gold Weekly Price Chart

Gold Price Chart - XAU/USD Weekly

Notes: In Last week’s Gold Price Outlook, we highlighted a month-long consolidation pattern in XAU/USD and heading into this week’s FOMC interest rate decision, our focus was on a breakout of this formation. A surge in the US Dollar post-Fed fueled further losses in bullion with price breaking below triangle support & the monthly opening-range yesterday.

The decline is testing initial support at the 2018 low-week close at 1184 with a more significant confluence region just lower at 1172. This level is defined by the 61.8% retracement of the entire late-2015 advance and converges on the 50-line of the descending pitchfork formation we’ve been tracking off the 2017 & 2018 highs.

A break below this threshold would be needed to mark resumption of the broader downtrend - note that this would necessitate a break below broader pitchfork support (blue) with such a scenario exposing subsequent objectives at 1124/30. Initial resistance stands at 1204 with a breach above the 61.8% extension / median-line at 1210 needed to shift the focus back towards confluence resistance at 1236/38.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Bottom line: Heading into the start of October trade, Gold prices will need to hold above support at 1171 IF the broader 2015 uptrend is to remain viable. From a trading standpoint, I’ll be looking for evidence of an exhaustion low early next month to offer more favorable long-entries while above multi-year structural support. Ultimately a weekly close above 1210 would be needed to suggest that a more significant low is in place.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

Gold Trader Sentiment

Gold Trader Sentiment
  • A summary of IG Client Sentiment shows traders are net-long Gold - the ratio stands at +5.37 (84.3% of traders are long) – bearishreading
  • Long positions are0.2% higher than yesterday and 147.2% higher from last week
  • Short positions are 5.8% higher than yesterday and 39.2% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. However traders are less net-long than yesterday but more net-long from last week and the combination of current positioning and recent changes gives us a further mixed Spot Gold trading bias from a sentiment standpoint.

See how shifts in Gold retail positioning are impacting trend- Learn more about sentiment!

Previous Weekly Technical Perspectives

Learn how to Trade with Confidence in our Free Trading Guide

--- Written by Michael Boutros, Technical Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com

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

DISCLOSURES