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. See our updated Privacy Policy here.

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
Subscribe
Please try again
GBP/USD
Bearish
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
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/Bnih4YvTdg
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
XAU/USD Set Up for V-Shaped Recovery, Fibonacci Levels Offer Resistance

XAU/USD Set Up for V-Shaped Recovery, Fibonacci Levels Offer Resistance

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • XAU/USD bounces back from key Fibonacci support
  • Short-term momentum has flipped to the upside
Advertisement

FIBONACCI LEVELS ARE KEY FOR CONTINUED RECOVERY

Since reaching a 5-month low on Monday, gold seems to have started a V-shaped recovery as the precious metal is up around 4.5% after bouncing off the 50% Fibonacci level 3 days ago. The current price is hovering around the 38.2% Fibonacci from the 1,451 – 2,075 surge at 1,840, an area that converges with the 200-SMA and therefore could offer resistance going forward.

XAU/USD Daily Chart

XAU/USD Set Up for V-Shaped Recovery, Fibonacci Levels Offer Resistance

This setup hasn’t fully gotten rid of bearish signals and is likely to offer more favorable entry points for sellers along the way, so a push above the 1,850 – 1,860 area will be needed to start considering short-term price reversal. Any further bullish momentum is likely to be met with resistance at the 1,900 mark, followed by the 23.6% Fibonacci at 1.928.

Continued weakness in the US Dollar on the back of renewed stimulus and vaccine hopes will likely be a supportive factor for gold, but, as we saw last week, XAU/USD price is not solely dependent on USD moves or yield behavior, as the commodity seems to have been sticking to technical factors lately. And Fibonacci levels have been of increased importance since the highs seen in August, given that every level since then has been highly relevant as a support/resistance area.

XAU/USD Hourly Chart

XAU/USD Set Up for V-Shaped Recovery, Fibonacci Levels Offer Resistance

Focusing on an hourly chart, moving averages are showing momentum shifting to the upside, supported by a golden cross of the 50-SMA over the 100 and 200-SMA. The 20-hour moving average seems to be showing immediate support so we could see daily pullbacks be halted around the 1,830 area.

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES