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. See our updated Privacy Policy here.

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
Oil - US Crude
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
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
  • 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/BdgFmkRxVw https://t.co/lM1OIJdjhr
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/6qGEVjDlN6
  • Although the medium-term outlook remains negative, Bitcoin could make a bullish move in the coming days if prices manage to hold above key support in the $29,150/28,600 region. Get your #Bitcoin forecast from @DColmanFX here: https://t.co/T7iAD0fbbU https://t.co/xVSG7nKIQG
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/HGWZikGQAa
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/bZEFtp8kFe https://t.co/2cQ0JgAfh7
  • Crude oil prices collapsed on Monday despite an OPEC+ breakthrough, driven by Covid-induced demand woes. Meanwhile, Gold is at odds with a stronger US Dollar and falling Treasury yields. Get your #crudeoil market update from @FxWestwater here:https://t.co/H1vmag8d1k https://t.co/1zuPdKUmyE
Gold Churns and Burns Traders Looking for the Breakout

Gold Churns and Burns Traders Looking for the Breakout

Michael Boutros, Strategist
Gold_Churns_and_Burns_Traders_Looking_for_the_Breakout_body_Picture_5.png, Gold Churns and Burns Traders Looking for the Breakout

Fundamental Forecast for Gold: Neutral

Gold is weaker at the close of trade this week with the precious metal off by more than 1.1% by the close of trade in Friday. This week has been marked by key central bank decisions from the Fed and the ECB with Friday’s non-farm payroll print offering gold some relief after three days of consecutive declines saw prices fall more than 2.18% to $1588. Despite the week’s price action however, gold has remained within a well-defined range as the yellow metal continues to consolidate into the apex of a three month long triangle formation.

The FOMC policy meeting on Wednesday roiled markets as the committee voted to maintain its current stance on monetary policy. The move fueled a sell-off in broader risk assets as investors, eager for more accommodative measures from the central bank, pared back bets for another round of large scale asset purchases. The ECB followed suite with President Mario Draghi’s remarks falling well short of market expectations for some form of easing amid ongoing concerns over the deepening crisis in Europe. Expectations for action were immense after comments made by Draghi last week where he pledged to do “whatever” was necessary to defend the euro including further rate cuts, another round of LTROs, and most importantly, outright sovereign bond purchases. The announcement fueled a massive sell-off in equity markets with the IBEX 35 (Spain’s stock market) ending the session of by nearly 5%. Friday’s NFP print was the week’s turning point with a much stronger than anticipated print of 163K prompting a rally that saw equity markets pare the entire week’s decline to close higher with gold lagging as trimmed QE bets saw demand for the yellow metal dwindle. As we’ve noted multiple times this year, gold has all but lost its “safe haven” status as prices continue to track risk with sell-offs moving nearly lockstep while rallies outpaced advances in bullion.

Looking ahead, as the Fed continues to soften its dovish tone for monetary policy, it has become increasingly evident that the central bank will refrain from further easing measures unless the US economy faces a real danger of slipping back into recession. As such, we expect topside advances in gold to remain limited in the interim as prices continue to range between $1550 and $1630. From a technical standpoint, bullion has continued to trade within the confines of a triangle formation dating back to the May lows with a false break last week quickly paring advances back into its former range. In broader terms, gold has continued to hold between the 38.2% and 61.8% Fibonacci extensions taken from the all-time highs made back in September and the February high at $1640 and $1545 respectively with interim weekly support coming in at the 50% extension at $1590. As gold continue to consolidate into the apex of the embedded triangle, we remain neutral until such a time when prices have cleared above or below the aforementioned long-term Fibonacci levels. It’s also important to note that recent downward pressure on the greenback now has the USDOLLAR Index facing key support at 9990. A break below this mark risks a more substantial correction lower in the reserve currency, with such a scenario likely to fuel gold with enough momentum to breach above its more than 3-month long range. -MB

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

DISCLOSURES