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
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
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
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Poll: How much of the oncoming global recession (the severity for which is open to enormous debate) has already been priced into the market's tumble the past two months?
  • I hope everyone's week is starting out well. Stay safe, sane and optimistic
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.35%, while traders in US 500 are at opposite extremes with 67.97%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/DdXcVKMXod
  • New York Fed Purchases $7 B in Treasury Coupons
  • ECB purchased EUR 30.15bln worth of bonds in initial week of PEPP
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: 1.57% Silver: 1.31% Oil - US Crude: -0.90% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Qx2KAAA23p
  • $SPX is up 5% over the weekend to test 2600 on the US market open https://t.co/3LuPlXBxhS
  • $EURUSD: With the big swing-low from last month at 10636 as a guide, a breakdown through that point should start to get the Euro some separation from the 20-year trend-line. Get your EUR/USD market update from @PaulRobinsonFX here:https://t.co/QL6sCBfQPD https://t.co/maDQxFwpUl
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: 5.08% France 40: 4.03% Wall Street: 4.02% US 500: 3.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/7GkBzXuwEO
  • German Bund Yields Update: 2-Year: -0.692% 3-Year: -0.691% 5-Year: -0.616% 7-Year: -0.581% 10-Year: -0.424% 30-Year: -0.020%
Gold Prices Remain Vulnerable After Failing to Test 2018-High

Gold Prices Remain Vulnerable After Failing to Test 2018-High

2018-02-21 16:00:00
David Song, Strategist
Share:

FX Talking Points:

- Gold Prices Remain Vulnerable After Failing to Test 2018-High.

- GBP/USD Rate Preserves Bearish Sequence Despite Hawkish BoE Comments.

DailyFX TableXAU/USD Table

Gold prices have sold off following the failed attempt to test the 2018-high ($1366) and the precious metal may face a larger pullback over the remainder of the month as the U.S. Federal Reserve appears to be on course to deliver a 25bp rate-hike in March.

Beyond the Federal Open Market Committee (FOMC) Minutes, a number of 2018-voting members are scheduled to speak over the coming days, and the group of central bank officials may increase their efforts to prepare households and businesses for higher borrowing-costs as ‘the Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate.’ As a result, a batch of hawkish comments may continue to sap the appeal of the precious metal especially as U.S. Treasury yields sit near the yearly highs, and gold prices stands at risk of working its way back towards the February-low ($1307) as they carve a fresh series of lower-highs.

XAU/USD Daily Chart

XAU/USD Daily Chart

Interested in trading? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

  • Downside targets are coming back on the radar for XAU/USD following the string of failed attempts to close above the $1359 (61.8% expansion) hurdle, while the Relative Strength Index (RSI) highlights a bearish tilt.
  • A closing price below $1328 (50% expansion) opens up the $1312 (61.8% expansion) to $1315 (23.6% retracement) region, which sits just above the monthly-low ($13070), with the next region of interest coming in around $1297 (23.6% retracement) to $1302 (50% retracement), the former-resistance zone.
GBP/USD Table

The British Pound remains under pressure following a batch of lackluster U.K. data prints, and GBP/USD appears to be on track to test the monthly-low (1.3765) as the pair extends the bearish sequence from earlier this week.

Fresh comments from Bank of England (BoE) officials have helped to mitigate the recent decline in the pound-dollar exchange rate as Governor Mark Carney and Co. endorse a hawkish outlook for monetary policy, and it seems as though the central bank will continue to normalize monetary policy in 2018 as the U.K. economy approaches full-capacity.

However, the Monetary Policy Committee (MPC) looks to be in no rush to implement higher borrowing-costs as BoE Chief Economist Andrew Haldane reiterates that future adjustments to the benchmark interest rate would be ‘gradual,’ and waning bets for an imminent rate-hike may generate a more meaningful correction in GBP/USD as the near-term outlook remains clouded with mixed signals.

Keep in mind, the broader forecast for Cable remains constructive as both price and the Relative Strength Index (RSI) preserve the upward trends carried over from 2017, but the recent string of lower highs & lows brings the downside targets back on the radar especially as the momentum indicators exhibits a similar behavior.

GBP/USD Daily Chart

GBP/USD Daily Chart

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

  • GBP/USD may continue to consolidate over the coming days as remains stuck in a wedge/triangle formation after failing to break above the 1.4310 (61.8% expansion) to 1.4350 (78.6% retracement) region.
  • A close below 1.3970 (50% expansion) opens up the Fibonacci overlap around 1.3830 (61.8% retracement) to 1.3870 (78.6% expansion), which sits above the monthly-low (1.3765), with the next downside region of interest comes in around 1.3690 (61.8% expansion) to 1.3700 (38.2% expansion).
DailyFX Calendar

Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

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

DISCLOSURES

News & Analysis at your fingertips.