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
Bearish
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
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
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇨🇭 Unemployment Rate (JUL) due at 05:45 GMT (15min) Previous: 3.2% https://www.dailyfx.com/economic-calendar#2020-08-10
  • The US Dollar is testing key support levels against the Singapore Dollar, Malaysian Ringgit, Philippine Peso and Indonesian Rupiah following persistent losses. Get your #ASEAN currencies market update from @ddubrovskyFX here: https://t.co/qqYDELqydd https://t.co/WPUL1SO8Fv
  • - #USDollar may catch a haven bid as the US and China lock horns over technology - #TrumpExecutiveOrders may encounter congressional friction, spark dash to cash - #bidenvppick announcement could fail to stir markets unless the choice is unexpected https://www.dailyfx.com/forex/fundamental/article/special_report/2020/08/10/US-Dollar-Comeback-Ahead-US-China-Tensions-Push-Havens-Higher.html
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.01%, while traders in US 500 are at opposite extremes with 77.49%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/AB97lqEJQB
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.18% 🇳🇿NZD: 0.13% 🇯🇵JPY: 0.12% 🇪🇺EUR: 0.08% 🇨🇦CAD: 0.05% 🇨🇭CHF: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ThG7IBzIKu
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.67% France 40: 0.66% Germany 30: 0.60% Wall Street: 0.23% US 500: 0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2l1TvwiW5l
  • The Indian Rupee struggled to benefit from an unexpected RBI rate hold as the Nifty 50 inched closer to invalidating a bearish reversal signal. What is the road ahead for USD/INR? Find out from @ddubrovskyFX here:https://t.co/Zjiay6hQWT https://t.co/IdM8hb6pI1
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/TJbPf8arC3
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.26% Gold: -0.27% Silver: -1.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/4Ap99p4ATh
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.18% 🇬🇧GBP: 0.16% 🇯🇵JPY: 0.14% 🇪🇺EUR: 0.09% 🇨🇦CAD: 0.08% 🇨🇭CHF: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5NRt7MMbs6
Gold Rally Capped Post FOMC- Bullish Invalidation 1194

Gold Rally Capped Post FOMC- Bullish Invalidation 1194

2016-03-19 01:58:00
Michael Boutros, Strategist
Share:
Gold Rally Capped Post FOMC- Bullish Invalidation 1194Gold Rally Capped Post FOMC- Bullish Invalidation 1194

Fundamental Forecast for Gold:Bullish

Gold prices traded higher this week, with the precious metal advancing 0.58% to trade at 1256 ahead of the New York close on Friday. Despite broader strength in the U.S. equity market, gold maintained its luster as Fed Chair Janet Yellen & Co. alluded to a more gradual pace of policy normalization, with the central bank projecting a slower rate of growth accompanied by softer inflation. As such, the Fed may look to buy more time before implementing the next rate-hike as the board continues to monitor external pressures from global markets.

In light of this week’s FOMC interest rate decision where the committee voiced a more dovish stance on policy, gold prices are likely to remain well supported. As noted last week that the, “Last time around, the (dot) plot showed a median expectation that interest rates will reach 1.25% in 2016 – We’ll be looking for a change in these dot plots with our base case scenario calling for a marked move lower in both the mean and median estimates. Remember that we came into 2016 with expectations the Fed will hike rates four times (now an extremely unlikely scenario) and if the dot plot shows a meaningful reduction in the committee’s expectations for higher rates, look for gold to remain on firm footing as investors seek alternative stores of wealth amid continued central bank easing.”

Gold Rally Capped Post FOMC- Bullish Invalidation 1194

Indeed the dot plot did show lowered expectations for higher rates this year with the majority of committee members suggesting interest rates may stay sub-1.0% throughout 2016. The release charged a marked rally in bullion which was trading lower on the week, but the advance may yet need to see a near-term correction before continuing higher. Bottom line: the delay in Fed normalization will continue prop up gold prices and we’ll maintain a constructive outlook while above the October highs.

Gold Weekly

Gold Rally Capped Post FOMC- Bullish Invalidation 1194

From a technical standpoint, gold is trading at some tricky levels as the pair struggles to solidify a break above a parallel extending off the 2015 October high as momentum continues to hold below the 70-threshold. The risk remains for a pullback in price with interim support eyed at 1246/50 backed by soft support at 1225 & our bullish invalidation level at 1194. We’ll be looking for move lower towards these levels to offer favorable long-entries with a breach of the highs targeting the 2015 high-week close backed at 1294 closely by the 2015 high-day close at 1301. Subsequent topside targets are eyed at the 2014 high week reversal close at 1293.

Looking for trade ideas? Review DailyFX’s Top Trading Opportunity of 2016

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

To contact Michael email or follow him on Twitter

To be added to Michael’s distribution list Click Here

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

DISCLOSURES

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.