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
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
Oil - US Crude
Mixed
Wall Street
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
Gold
Bullish
GBP/USD
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
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
  • China sets the Yuan reference rate vs #USD at 7.0477 (BBG)
  • South Korea coronavirus death toll rises by 6 to 158 following reports that the country had confirmed 78 more additional cases, bringing the total to 9,661 (BBG) #USDKRW #covid19
  • Currency Strategist,@PaulRobinsonFX is a Swing trader. What is your #tradingstyle? Take the quiz and let us know: https://t.co/LPBOcS0Vtd https://t.co/skDq5iLemR
  • Singapore MAS eases policy and reduced the currency band slope to zero. (BBG) Learn more about how to trade #USDSGD here - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/09/03/The-Singapore-Dollar-and-MAS-What-is-SGD-and-How-to-Trade-it.html
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/2:00 AM GMT for insight on the cross market weekly outlook. Register here: https://t.co/E213bTtq5C https://t.co/x0FHuNIsJ5
  • RT @JPan_IG: SINGAPORE CENBANK SAYS MAS WILL ADOPT A ZERO PERCENT PER ANNUM RATE OF APPRECIATION OF THE POLICY BAND STARTING AT THE PREVAIL…
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/yF133btXFd https://t.co/rUp1G9zzxj
  • #SPX futures down over 1.5% too, echoing risk-off bias https://t.co/Z0n4L156tl
  • MARKET SNAPSHOT: #ASX200 modestly higher in early trade but #Nikkei futures down over 2.5% before Tokyo trading open. #USD and #JPY leading the way higher in G10 FX, hinting at risk-off tilt, but #AUD and #NZD recovering from earlier losses
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/Nij6senHVx
Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

2017-01-21 01:37:00
Michael Boutros, Strategist
Share:
Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

Fundamental Forecast for Gold: Neutral

Gold prices marched higher for a fourth consecutive week with the precious metal up 0.86% to trade at 1207 ahead of the New York close on Friday. Sustained weakness in the greenback continued to offer support for bullion which held near two-month highs as all the world shifted its attention to the inauguration of the 45th President of the United States. The technical & fundamental picture remains precarious near-term and although prices look due for a set-back, the broader outlook remains unchanged.

Heading into next week, traders will be closely eyeing the release of US 4Q GDP figures on Friday. Consensus estimates are calling for an annualized print of 2.2% q/q, down from 3.5% q/q. Keep in mind that interest rate expectations remain firmly rooted for the second half of the year with Fed Fund Futures citing a 74% chance for a hike at the June meeting. However, with the inauguration of a new president and a more ‘business friendly’ administration expected to take the reins, markets may take more cues near-term by the first few days of the Trump presidency. From a trading standpoint, while the broader focus remains constructive, the advance remains vulnerable heading into the last full week of January trade.

XAUUSD Speculative Sentiment Index

Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders are net long Gold- the ratio stands at +1.51, down from 1.66 last week. It’s important to note that “SSI has continued to narrow from the 2016-extreme of +5.02 and has been accompanied by a marked change in price behavior.”

Note that the ratio is now approaching more neutral levels and highlights the risk of a near-term pullback in price. It’s too early to tell if this will develop into a more significant turn, but for now, the risk is for a correction lower while below resistance. That said, I’ll be looking for a continued build in short exposure / a flip to next short to suggest that a broader, more significant low is in place.

Gold Daily

Gold Off Key Resistance- Trump, US GDP to Determine Depth of Correction

Last week we noted that "Heading into next week, things get a bit dicey for gold. We can’t rule out a run on critical confluence resistance just higher at 1218, but we’ll generally be looking for an exhaustion pullback in prices with near-term support eyed at 1182.” The outlook / levels remain unchanged. I would be looking for a pullback next week to offer more favorable long entries with a break below interim support at 1200 targeting highlighted confluence slope support at 1182. A breach eyes longer-term resistance targets at 1238/41 & 1248.

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

Join Michael for Live Weekly Trading Webinars on Mondays on DailyFX at 13:30 GMT (8:30ET)

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

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

DISCLOSURES

News & Analysis at your fingertips.