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
Bullish
Oil - US Crude
Bullish
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
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
Bearish
More View more
Real Time News
  • The #Dollar has bottoming potential, but that is starting to lose weight as it fails to sustain any lift; next week could be a big one for #USD’s near-term outlook. Get your #currencies update from @PaulRobinsonFX here: https://t.co/IifHjik7gM https://t.co/R9b4jdTPnO
  • 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/lW1rqjpy0x
  • I’d like to thank my followers, I just reached 5,000 which is quite a milestone for someone that isn’t a huge fan of the platform. Thank you all very much ❤️
  • Technology stocks continue to be a source of weakness for US equities, undermining risk appetite. Meanwhile, US-China tensions simmer beneath the surface creating uncertainty. Get your #equities update from @PeterHanksFX here: https://t.co/yH8oTwT3iW https://t.co/tvfrXThyaC
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/Xi9QU3ADPF
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/cQwbeZ6Feq
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
Gold Prices at Resistance into August Open- NFPs In Focus

Gold Prices at Resistance into August Open- NFPs In Focus

2016-07-30 00:52:00
Michael Boutros, Strategist
Share:
Gold Prices at Resistance into August Open- NFPs In Focus

Fundamental Forecast for Gold: Neutral

Gold prices snapped a two-week losing streak with the previous metal rallying more than 1.7% to trade at 1346 ahead of the New York close on Friday. The advance comes alongside a steep sell-off in the greenback with the Dollar Index (ticker: USDOLLAR) reversing sharply from technical resistance early in the week. Despite the recent rebound, prices are now approaching resistance with the immediate topside bias at risk heading into next week. Ideally we’ll be looking for a more prominent set-back to offer more favorable long-entries near structural support.

U.S. 2Q GDP figures released on Friday grossly missed expectations with an annualized print of just 1.2% q/q and a downward revision to last quarters’ already dismal read to just 0.8% q/q. The core personal consumption expenditure (PCE), the Fed’s preferred gauge of inflation, slipped to 1.7% from 2.1% the previous quarter. The combination of slower-than-expected growth & weak inflation all but nullifies prospects for a rate hike at the upcoming September meeting. Fed Fund Futures saw a dramatic decrease in interest rate probabilities on the back of the release with markets now pricing in the first material expectation for a rate hike (>50%) to be in September of 2017.

Looking ahead to next week, traders will be closely eyeing the U.S. economic docket with ISM data, factory orders, ADP employment and non-farm payrolls on tap. With growth concerns beginning to take root, a weaker print on labor markets could have a more pronounced impact on gold prices as the bar remains high for the central bank normalization. If expectations for higher rates continuing to diminish, expect gold prices to remain broadly supported as investors seek the relative safety of bullion as a store of wealth amid the ongoing market turmoil. That said, prices are now approaching a resistance zone that leaves the immediate advance vulnerable heading into the open of August trade.

Gold Daily

Gold Prices at Resistance into August Open- NFPs In Focus

From a technical standpoint, our outlook for gold remains unchanged from last week. Keep in mind gold prices turned from a key trendline resistance extending off the 2011 record high this month and the risk remains for a move lower before resumption of the broader up-trend. Keep in mind we’re heading into the August open & we’ll be looking for the monthly opening range for guidance on our medium-term outlook.

From a trading standpoint, the immediate rebound is eying key near-term resistance & bearish invalidation at 1350/55- a region of interest for near-term exhaustion / short-entries. A break below the 1303/08 support zone targets 1287 & key confluence support into 1266/71- a region defined by the 61.8% retracement of the late May advance & the 100-day moving average and converges on basic trendline support off the December lows late in the week. I would be looking for long-triggers on a move into this range. Continue to track this trade throughout the week on SB Trade Desk.

Looking longer-term? Click here to review DailyFX’s 2Q Gold Projections

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

Follow Michael on Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)

.

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

DISCLOSURES