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
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
Mixed
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
  • LIVE NOW: In this session, Strategist @DavidJSong will discuss trading strategies for the top event risk in the week ahead https://www.dailyfx.com/webinars/175202251
  • LIVE IN 30 MIN: In this session, Strategist @DavidJSong will discuss trading strategies for the top event risk in the week ahead https://www.dailyfx.com/webinars/175202251
  • The possibility of a Covid-19 cure by year end keeps market sentiment high despite ongoing political tensions. Get your $USDMXN market update from @HathornSabin here: https://t.co/6DIf6krA3E https://t.co/IxeRbjHpQm
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/qqWZkK1G8B
  • The commodity currencies, AUD, CAD, and NZD, which typically benefit from their higher yield profile relative to other currencies (the carry trade), no longer hold this advantage. Get your #currencies market update from @CVecchioFX here: https://t.co/3oWXhp0hCX https://t.co/qOgXnf0JKK
  • The long-term outlook for the Euro has been boosted significantly by a Franco-German proposal for a €500 billion coronavirus Recovery Fund, even though an agreement is not yet close. Get your $EURUSD market update from @MartinSEssex here: https://t.co/onP43pXuDi https://t.co/nynDJ9P6br
  • On Friday, EUR/GBP surged to an over six-week high at 0.8940 then closed the weekly candlestick in the green with a 2.3% gain. Get your $EURGBP market update from @malkudsi here: https://t.co/ln09Ijn7rd https://t.co/OCe7fzGGC0
  • The Canadian Dollar has proven stable in recent weeks following a dramatic turn lower in March, guided to the downside by energy markets. Get your $USDCAD market update from @CVecchioFX here: https://t.co/7tlrn74X3t https://t.co/OGqZzWaxU4
  • As political tensions between the US and China increase, $gld is picking up a safe-haven bid ahead of the long weekend and may look to press higher. Get your $XAUUSD market update from @nickcawley1 here: https://t.co/boUn4vyfCO https://t.co/sVtnBALhw7
  • Both WTI and Brent crude futures have conformed to the negative risk tone, however, investors will be eying the latest Baker Huges rig count for another drop in #oil rigs. Get your market update on currencies, commodities & stocks from @JMcQueenFX here: https://t.co/G6CEBzNXVA https://t.co/gosmDwkKSX
Gold Holds Support as NFPs Disappoint- $1349 Remains Key Resistance

Gold Holds Support as NFPs Disappoint- $1349 Remains Key Resistance

2013-08-02 21:23:00
Michael Boutros, Strategist
Share:
Gold_Holds_Support_as_NFPs_Disappoint_1349_Remains_Key_Resistance_body_Picture_1.png, Gold Holds Support as NFPs Disappoint- $1349 Remains Key Resistance

Gold Holds Support as NFPs Disappoint- $1349 Remains Key Resistance

Fundamental Forecast for Gold: Neutral

Gold prices were softer at the close of trade this week with the yellow metal sliding 1.5% to close at $1312 in New York on Friday. An event risk packed week saw bullion prices largely range bound as we headed into the highly anticipated non-farm payrolls report on Friday. But with the data disappointing consensus estimates, near-term the gold trade may remain supported as expectations for a September taper from the Fed are challenged.

The FOMC rate decision on Thursday offered little clarity with regards to the exit strategy, with the central bank sounding rather dovish this time around as they highlighted the risk for disinflation. The committee also stressed that rates are likely to remain low for some time after tapering has been completed with the statement noting that the central bank ‘reaffirmed’ its intention to keep its accommodative stance- a contrast from the ‘expects’ language used in previous statements. That being said, the broader impact on the greenback is likely to remain limited with near-term weakness to offer favorable longs in the USDOLLAR.

Friday’s NFP print proved beneficial for the yellow metal after the report disappointed with a print of just 162K, missing estimates calling for a read of 185K. Gold prices were probing below near-term support on Friday ahead of the read with the print fueling a rally back above the $1300 level as the U.S. Dollar came under pressure. Although the data missed, the headline unemployment rate did see and unexpected drop from 7.6% to 7.4%, topping estimates calling for a read of 7.5%, despite a slight drop in the civilian labor force.

With the bulk of key US economic data now out of the way, the docket will be rather light next week and traders will be closely eyeing remarks from FOMC members in the wake of this week’s NFP print. With Chicago Fed President Charles Evans – a voting member on the FOMC – scheduled to speak next week, comments from the central bank dove may further dampen the scope of seeing the Fed taper at the September 17-18 meeting and the committee may continue to delay its exit strategy in an effort to encourage a stronger recovery.

From a technical standpoint, gold’s dip below the interim support range at $1295- $1307 will constitute a false break if prices hold above the level on a daily close basis. This puts the near-term focus higher early next week but does not invalidate the broader downtrend. It’s also important to note that the daily RSI signature has now rebounded off the 50-threshold and the risk for a push higher in the near-term remains so long as prices stay above $1307. The key interim resistance range noted last week remains in play at $1334-$1349 with a breach above this mark risking a run on $1370. Only a breach and daily close above the 1393/97 pivot range would invalidate the longer-term trend while a break and close below support eyeing subsequent support targets at $1262/68, $1243 and $1215. Bottom line: topside in the near-term remains a risk with rallies into our key thresholds offering favorable short entries. -MB

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

DISCLOSURES

News & Analysis at your fingertips.