US Dollar, Gold Price Remain Rangebound
US Dollar and Gold Talking Points:
The DailyFX Q3 USD Forecast is available to download.
US Dollar in Thrall of US China Trade Talks
The US dollar opens the week marginally lower but remains supported after Friday’s strong economic data prints. The greenback will also draw haven strength from the reports that the US may impose sanctions on $200 billion of Chinese imports but at a rate of 10% compared to earlier talk of 25% tariffs. An announcement is expected in the first-half of the week and will shape US dollar, and gold, trading in the short-term.
The US dollar index (DXY) is currently trading just below its 20- and 50-day moving averages but above its 200-day ma.
US Dollar Index (DXY) Daily Chart (January -September 17, 2018)
The DailyFX Economic Calendar has a full rundown of all data points of interest with prior readings and the latest expectations.
Gold’s Downtrend Remains, Retail Even Longer
The precious metal continues to struggle to make a decisive break to the upside and is capped by Fibonacci retracement at $1,215/oz. a level that has held for the last five weeks. Any upside movement is likely to be capped by the 20- and 50-day moving averages, at $1,199/oz. and $1,204/oz. respectively before Fibonacci retracement steps in.
Gold Daily Price Chart (December 2017 – September 17, 2018)
IG Retail Sentiment shows that traders are 87.6% net-long gold and are further net-long than last week and yesterday. This gives us a strong bearish contrarian bias for gold.
--- Written by Nick Cawley, Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.