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
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
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
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
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
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • - S&P 500 unimpressed by ongoing fiscal talks as #election nears - Third and final presidential debate coming up: what to expect - Why might the #SP500 index target an inflection point 3361? https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/10/20/SP-500-Uninspired-by-Fiscal-Talks-Ahead-of-Final-Presidential-Debate.html
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET / 0:00 GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/k1eyZzhAWa
  • The British Pound may fall if EU and UK negotiators fail to reach a consensus as the December 31 deadline nears. The third presidential debate is on deck, how might markets react? Find out from @ZabelinDimitri here:https://t.co/kDSYzBDA3t https://t.co/wmltuIVo5h
  • #BTC testing confluent resistance at the Ascending Channel midpoint and September high (12067) RSI hints at further gains as it surges towards overbought territory Is #Bitcoin poised to break back above key resistance at the $12,000 mark? https://t.co/YCPnKq0VcJ https://t.co/EgHA4jELhI
  • I thought it was make or break today by the close on whether they can get a fiscal stimulus before the Nov 3rd election... https://t.co/YgwnE9vDXC
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.48% 🇪🇺EUR: 0.45% 🇨🇭CHF: 0.32% 🇯🇵JPY: -0.06% 🇦🇺AUD: -0.27% 🇳🇿NZD: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0YPpZ9dwBY
  • USD/JPY Price Outlook: Dollar-Yen Undermined by Fiscal Stimulus Hopes Link to Analysis via @DailyFX: https://www.dailyfx.com/forex/market_alert/2020/10/20/usdjpy-usd-jpy-price-outlook-dollar-yen-undermined-by-stimulus-hopes.html $USDJPY $USD $JPY #FX #Forex #Trading https://t.co/yNss3yhgt7
  • It’s been relatively quiet in FX-land, but the USD did push below a big zone of support earlier today. Get your $USD currency pairs technical analysis from @JStanleyFX here:https://t.co/ZC8g3lVxoO https://t.co/lchSrr9hBO
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 1.02% Gold: 0.15% Oil - US Crude: -1.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/SN5ZJQwiRu
  • White House Chief of Staff Mark Meadows: -Mnuchin and Pelosi made good progress on stimulus talks today -We still have a ways to go toward reaching a deal -Talks productive enough to continue again tomorrow -Trump admin offer currently stands at $1.88-trillion
Gold Technical Outlook: Price Breakout Approaching Initial Targets

Gold Technical Outlook: Price Breakout Approaching Initial Targets

2018-12-08 18:00:00
Michael Boutros, Strategist
Share:

Gold Technical Outlook: Price Breakout Approaching Initial Targets

A breach above the November range takes gold prices near five-month highs. Here are the targets & invalidation levels that matter on the XAU/USD charts next week.

A breach above the November range highs has taken gold prices to levels not seen since mid-July and keeps the focus higher heading into next week. These are the updated targets and invalidation levels that matter on the XAU/USD charts.

New to Gold Trading? Get started with this Free How to Trade Gold -Beginners Guide

Gold Daily Price Chart (XAU/USD)

Daily Chart of Gold

Technical Outlook: In our last Gold Technical Outlook we noted that a breakout was imminent as price was testing the October trendline. Out ‘bottom line’ cited that “The monthly opening-range remains intact heading into the November close. For now, look for a break of this week’s range for guidance with our broader focus higher while within this ascending pitchfork formation. From a trading standpoint, I continue to favor fading weakness while above 1210.”

Gold rallied through critical resistance early in the week with the advance taking out the November range highs on the way. Daily resistance targets are eyed at the August 2017 low at 1252 backed by the 200-day moving average and the 50% retracement of the yearly range at 1262. Broader bullish invalidation now raised to 1214.

Why does the average trader lose? Avoid these Mistakes in your trading

Gold 240min Price Chart (XAU/USD)

4 hour chart of gold

Notes:A closer look at price action sees the advance off the November lows holding within the confines of this slope series (red) and suggests the immediate advance may be vulnerable here heading in to the close of the week. Interim support rests at 1236 – a break there would suggest a larger pullback towards the lower parallels at 1227 and the monthly open at 1221- the near-term focus remains higher while above this level with a topside breach targeting subsequent resistance objectives at 1252, 1260 and 1262.

Learn how to Trade with Confidence in our Free Trading Guide

Bottom line: We’ll favor fading weakness near-term while above the monthly open targeting the upper parallels. From a trading standpoint, a good place to reduce long-exposure / raise protective stops; IF we get a pullback, look for more favorable entries towards slope support next week.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

Gold Trader Sentiment

Gold Technical Outlook: Price Breakout Approaching Initial Targets
  • A summary of IG Client Sentiment shows traders are net-long Gold - the ratio stands at +3.14 (75.8% of traders are long) – bearishreading
  • Long positions are4.4% lower than yesterday and 6.4% lower from last week
  • Short positions are 3.6% higher than yesterday and 35.0% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Gold prices may continue to fall. Yet traders are less net-long than yesterday & compared with last week and the recent changes in sentiment warn that the current Gold price trend may soon reverse higher despite the fact traders remain net-long.

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Mchael on Twitter @MBForex or contact him at mboutros@dailyfx.com

Other Weekly Technical Forecast:

Australian Dollar Forecast – AUD/USD, AUD/JPY and EUR/AUD Trend Lines Broken

British Pound Forecast – Sterling Remains Weak

US Dollar Forecast – Dollar Wind Up Threatens to Resolve with a Break Before 2018 Ends

Equity Forecast – Technical Forecast for the S&P 500, Dow Jones, DAX 30 & FTSE

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

DISCLOSURES