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
Mixed
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
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The future implications of the #Elections2020 may influence $AUDUSD following the #RBA and #Fed rate decisions as Congress struggles to pass another round of fiscal stimulus. Get your #currencies update from @DavidJSong here: https://t.co/soPu0Wefz2 https://t.co/UWsERr2AYh
  • Gold prices declined in the aftermath of bearish technical cues, but a key zone of support was reinforced. $XAUUSD volatility risk is elevated ahead of the #Elections2020. Get your #metals update from @ddubrovskyFX here: https://t.co/gWOxdqk8OL https://t.co/gBMgF0YNjH
  • USD awakens, placing GBP/USD on the backfoot, while EUR/GBP cracks 0.90. Get your #currencies update from @JMcQueenFX here: https://t.co/fndMQJLul8 https://t.co/elz5gNAKrB
  • What are some factors impacting Euro’s forecast this quarter? Get your free forecast here: https://t.co/kpBYVz31Bd https://t.co/7EzMPg9Kqg
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/DjMdgL5x19
  • 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/6sqqRfTri2
  • The British Pound, Australian Dollar and US Dollar may all experienced heightened periods of volatility as geopolitical risks in North America, Asia and Europe rattle global financial markets. Get your $GBPUSD market update from @ZabelinDimitri here:https://t.co/0EFToM5Y8I https://t.co/5gsZQfX6aG
  • The New Zealand Dollar may continue to outperform the haven-associated US Dollar as price breaks above key long-term resistance. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/D1DxtDkJXd https://t.co/DwkK9F9FCJ
  • #Gold prices declined following bearish technical cues, but a key zone of support was reinforced over the past 48 hours. #XAUUSD volatility risk is elevated ahead of the #USElection - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/30/Gold-Technical-Forecast-Election-Raises-Volatility-Risk-But-Support-Holds.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/5hgGEojvIE
  • What is the US Dollar outlook based on retail positioning ahead of the November 3rd presidential election? EUR/USD may fall as AUD/USD rises. Which way could USD/CAD capitulate? Find out from @ddubrovskyFX here:https://t.co/BVoIcR9anM https://t.co/Frmn9y6yKJ
Gold Eyes Key Trendline Support Dating 2008 - Next Week Critical

Gold Eyes Key Trendline Support Dating 2008 - Next Week Critical

2012-03-16 22:59:00
Michael Boutros, Strategist
Share:
Gold_Eyes_Key_Trendline_Support_Dating_2008_-_Next_Week_Critical_body_Picture_5.png, Gold Eyes Key Trendline Support Dating 2008 - Next Week CriticalGold_Eyes_Key_Trendline_Support_Dating_2008_-_Next_Week_Critical_body_Picture_6.png, Gold Eyes Key Trendline Support Dating 2008 - Next Week Critical

Fundamental Forecast for Gold: Bullish

Gold was substantially weaker this week with the precious metal plummeting nearly 3.2% after an upbeat FOMC policy statement further silenced calls for another round of quantitative easing from the Fed with investors turning on the yellow metal and US Treasuries in favor of higher yielding assets. While a rally in the greenback may have contributed to the metal’s decline, a rebound off key Fibonacci resistance in the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) may be the catalyst needed to prompt a reversal in the price of gold.

On Tuesday the FOMC rate decision and accompanying policy statement offered a cautiously optimistic assessment of the domestic economy with the results of the Fed’s stress test on US banks suggesting that all but 4 of the top 19 banks held sufficient capital to be able to continue lending to households and businesses through times of severe economic and financial stresses. The news put further pressure on gold with the metal falling 1.61% on the session. With economic data continuing to improve and stronger confidence with regards to the health and capitalization of the banking sector, gold continued to decline into the close of trade on Wednesday as investors trimmed bets for further dollar diluting asset purchases from the Fed.

Looking ahead traders will be eyeing minutes from the RBA and BoE for insight into the central bank’s policy stance as equities continue to advance amid subsiding concerns regarding the European debt crisis and stronger-than-expected economic data. With the US docket rather light next week, gold broader risk trends are likely to steer gold prices with the technicals suggesting we may be approaching critical support for the yellow metal just lower as we continue to trade within a descending channel formation.

Gold broke below last week’s low at $1663 early in the week before rebounding off support at the second standard deviation Bollinger band at $1635. Interim resistance stands at the 23.6% Fibonacci retracement taken from the February 29th descent at $1670 with subsequent topside targets eyed at the 200-day moving average at 1680, and the 38.2% retracement just shy of the $1700 mark. A break below this week’s low eyes initial support targets at the 23.6% retracement taken from 2008 advance at $1628. Critical downside support rests with the trendline dating back to the 2008 lows, currently around $1600. A break below this level risks substantial losses for the precious metal with such a scenario eyeing subsequent support targets at $1440. We remain cautiously bullish on Gold at these levels noting that our medium-term bias remains weighted to the topside with a break above the 2012-high offering further conviction on our directional bias. - MB

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

DISCLOSURES