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
EUR/USD
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
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • US House passes vote threshold to pass government funding stopgap bill $DXY
  • Commodities Update: NYM WTI Crude 58.32 (+0.36%), ICE Brent Crude 64.51 (+1.43%), NYM NYH Gasoline 169.73 (+2.39%). [delayed]
  • video of today's webinar archived and ready to go -> https://www.dailyfx.com/forex/video/live_events/2019/09/19/fx-price-action-setups-post-fomc-gbp-usd-aud-usd-usd-cad-usd-chf-usd-chart.html
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 0.42% Gold: 0.41% Oil - US Crude: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/qdRVEtYobI
  • I am genuinely curious how Saudi Arabia got production back up so quickly. Makes it seem like they had massive spare capacity that was idled or they just ran a big garden hose around the portion of the plants that was destroyed...
  • US and Chinese 'deputies' are due to restart negotiations today. Meanwhile, the cumulative pain of tariffs continues to show through. FedEx earnings are an example. Here is $FDX overlaid with the Yuan-Dollar exchange rate (green) https://t.co/WZtuuUkhE7
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.67%, while traders in France 40 are at opposite extremes with 85.67%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/T417OE2Mmy
  • $NZDUSD: A close below the low end of the zone could send NZD/USD towards 0.6136. Get your #technicalanalysis from @malkudsi here: https://t.co/i2YMDFJkRp https://t.co/TuvWNJZtgg
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.22% Wall Street: 0.13% Germany 30: -0.04% France 40: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/aDo9IwMads
  • Re-upping this. https://t.co/SUv8Lzbhxu
Gold Price Targets: XAU/USD at Critical Resistance – Trade Outlook

Gold Price Targets: XAU/USD at Critical Resistance – Trade Outlook

2019-08-13 16:00:00
Michael Boutros, Technical Strategist
Share:

Gold prices are testing a critical resistance confluence at the late-2011 / 2012 lows and the puts the immediate long-bias at risk while below this key threshold. These are the updated targets and invalidation levels that matter on the XAU/USD charts this week. Review this my latest Strategy Webinar for an in-depth breakdown of this gold trade setup and more.

New to Gold Trading? Get started with this Free How to Trade Gold -Beginners Guide

Gold Price Chart - XAU/USD Daily

Gold Price Chart - XAU/USD Daily - GLD Technical Forecast - Trade Outlook

Technical Outlook: In my latest Gold Price Weekly Outlook we warned that the, “gold breakout is getting deep with the advance now maturing towards long-term uptrend slope resistance targets. From at trading standpoint, look to reduce long-exposure / raise protective stops on a stretch towards trend resistance around 1522/26- a region of interest for possible near-term exhaustion.” Price briefly registered a high today at 1534 before pulling back with the advance now vulnerable while below 1526.

Initial daily support rests at 1482 backed by 1451 with broader bullish invalidation now raised to 1433. A topside breach / close above the 1522/26 resistance zone is needed to keep the long-bias viable with such a scenario targeting 1558 and the 61.8% retracement of the decline off the 2011 record highs at 1585.

Gold Price Chart - XAU/USD 120min

Gold Price Chart - XAU/USD 120min - GLD Technical Forecast - Trade Outlook

Notes: A closer look at gold price action shows XAU/USD breaching pitchfork resistance only to slam into critical resistance at 1522/26 in early European trade. The advance remains at risk while below this threshold and we’re on the lookout for an exhaustion pullback here. Weekly open support rests at 1497 backed by the Fibonacci confluence at 1482/83- look for a reaction there IF reached. A downside break targets the median-line backed by 1451/52- an area of interest for possible near-term exhaustion.

Why does the average trader lose? Avoid these Mistakes in your trading

Bottom line: Gold prices are testing a critical resistance confluence at 1522/26 and we’re looking for a reaction up here. From a trading standpoint, a good spot to reduce long-exposure / raise protective stops. Be on the lookout for signs of exhaustion with a break below 1483 needed to suggest a larger correction is underway. Ultimately a larger setback would have us looking or more favorable long-entries closer to trend support. Review our latest Gold 3Q forecasts for a longer-term look at the technical picture for XAU/USD prices.

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

Gold Trader Sentiment

Gold Trader Sentiment - XAU/USD Price Chart - GLD Technical Forecast - Trade Outlook
  • A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +1.7 (63.0% of traders are long) – bearishreading
  • Long positions are10.0% higher than yesterday and 15.2% higher from last week
  • Short positions are4.7% higher than yesterday and 13.0% 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. Traders are further net-long than yesterday & last week, and the combination of current positioning and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias from a sentiment standpoint.

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

---

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES

News & Analysis at your fingertips.