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 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
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/Gi8LHCT5sB
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/FFmRYyx4ou
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/r7aJb4qpqc
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/fIGDaDW21V
Gold Prices Extend Gains as USD Plunges- All Eyes on FOMC

Gold Prices Extend Gains as USD Plunges- All Eyes on FOMC

2017-07-22 03:34:00
Michael Boutros, Strategist
Share:
Gold Prices Extend Gains as USD Plunges- All Eyes on FOMC

Fundamental Forecast for Gold: Bullish

Gold prices rebounded for a second consecutive week with the precious metal surging 2.06% to trade at 1253 ahead of the New York close on Friday. The advance marks the largest weekly gain since May and has been supported by continued weakness in the greenback with the DXY down more than 1.3%. Looking ahead to next week, price action looks poised for another push higher with key U.S. event risk on tap.

The FOMC interest rate decision is slated for Wednesday with traders looking for any alterations in the central bank’s policy outlook. Gold has been kept afloat by a softening in expectations that the Fed will inevitably delivery on its projections for another rate-hike this year. As it stands, market participants are factoring only a 52% chance for a 25bps hike in December. While the implications of a delay in normalization are bullish for bullion, prices are now targeting key longer-term resistance targets, putting the topside-bias at risk heading into next week.

Gold Prices Extend Gains as USD Plunges- All Eyes on FOMC
  • A summary of IG Client Sentimentshows traders are net-long Gold - the ratio stands at +3.89 (79.5% of traders are long)- bearish reading
  • Long positions are 2.5% lower than yesterday and 11.7% lower from last week
  • Short positions are 8.9% lower than yesterday but 12.3% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may fall. That said, retail is more net-long than yesterday but less net-long from last week and the combination of current positioning & recent changes gives us a further mixed near-term Spot Gold trading bias from a sentiment standpoint.

Learn how to use Gold sentiment in your trading. Get more information on Sentiment here Free!

Gold Weekly

Gold Prices Extend Gains as USD Plunges- All Eyes on FOMC

Gold prices reversed off confluence support last week at the March low-day close / 50% retracement of the December rally at 1204/09. Note that the 61.8% line of the broader ascending pitchfork formation extending off the 2013 & 2016 lows also converged on this region. The rally is now approaching key slope resistance extending off the 2016 high – this is a parallel of the slope extending off the 2011 record highs.

Gold Daily

Gold Prices Extend Gains as USD Plunges- All Eyes on FOMC

The focus is on resistance here at the confluence of the upper parallel and the June opening range lows at 1258 with the broader outlook tilted to the topside. Look for initial support back at the monthly open at 1241 backed by bullish invalidation at the 200-day moving average ~1230.

A breach above the highlighted resistance zone puts the broader up-trend back in focus with such a scenario targeting a sliding parallel extending off the January highs, currently around 1280s.

Join Michael for his bi-weekly Live Webinar on the Foundations of Technical Analysis- Register for Free Here!

Gold 240min

Gold Prices Extend Gains as USD Plunges- All Eyes on FOMCGold Prices Extend Gains as USD Plunges- All Eyes on FOMC

A closer look at price action highlights a near-term channel extending off the monthly lows with the upper parallel converging on the 1259/61Fibonacci zone. Look for a reaction there with the near-term outlook constructive while above 1230. A breach higher targets subsequent resistance objectives at 1270 and 1281. Bottom line, if gold is going to pullback near-term, 1260 would be a good spot. Ultimately we’ll be looking for long-entries on move back towards support.

Want to learn more about Multi-timeframe analysis? Click here for Michael’s three part trading series.

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

Follow Michaelon 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