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
Mixed
Wall Street
Mixed
Gold
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
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.02% 🇯🇵JPY: -0.09% 🇨🇭CHF: -0.23% 🇦🇺AUD: -0.24% 🇪🇺EUR: -0.28% 🇳🇿NZD: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0VwHnTmEQU
  • How to Read a Candlestick Chart...#trading #candlesticks #analysis @DailyFX https://t.co/vQuWEoaYz8
  • USD/MXN Price Forecast: A Risk of a Possible Reversal- USD vs Mexican Peso More details in the link below: https://www.dailyfx.com/forex/technical/article/special_report/2020/04/08/USDMXN-Price-Forecast-A-Risk-of-a-Possible-Reversal-USD-vs-Mexican-Peso-MK.html?CHID=9&QPID=917714 https://t.co/Q8bfVUbgnr
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.26% US 500: -0.43% Germany 30: -1.12% France 40: -1.71% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/hq1dYt2NIv
  • LIVE NOW! Strategist @PaulRobinsonFX discusses important technical developments relevant to short to intermediate-term commodity and equity index traders here - https://www.dailyfx.com/webinars/816147795?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Psychologist & Trading Coach Brett Steenbarger,discusses his views on ✔️ Trading psychology ✔️ Identifying market tops and bottoms. ✔️ Technical analysis and market psychology relationship Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/Twr44cZ1GB https://t.co/WBmhA7EOHo
  • LIVE IN 30 MIN: Strategist @PaulRobinsonFX discusses important technical developments relevant to short to intermediate-term commodity and equity index traders here - https://www.dailyfx.com/webinars/816147795?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Nigeria has made the conscious decision to shut down all its oil refineries
  • ECB's Kazaks says the ECB can expand and extend stimulus scheme if needed, adds that capital key deviation will be short-term and operational $EUR
  • Los #Coronabonos vuelven a dividir a Europa, $EURGBP en busca de dirección clara #eur #gbp #trading https://t.co/BVavtxXGr0
Gold Prices Wedging into Consolidation Near Resistance

Gold Prices Wedging into Consolidation Near Resistance

2016-08-10 19:38:00
James Stanley, Strategist
Share:

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

  • Gold Technical Strategy: Bullish trend continues with price action consolidating in a symmetrical-wedge near multi-year highs.
  • Gold prices have been volatile over the last week around major-USD themes driven by FOMC, GDP and then NFP.
  • If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator.

In our last article, we looked at the retracement in the up-trend in Gold prices just ahead of the Bank of England rate decision. And while the BOE unrolled a bazooka of stimulus, it was the NFP report a day later that really hit Gold prices. After a blowout print for U.S. jobs in the month of July, the Dollar strengthened significantly and this pulled Gold prices down to deeper levels of support.

That move of weakness in Gold prices continued through the open this week until a short-term ‘higher-low’ was established around the $1,330-area of the chart. We had discussed this level shortly after the weekly open, and thus far that support has held as price action ratcheted back above the key Fibonacci level at $1,342.19, which is the 76.4% retracement of the 3-year move in Gold prices, taking the high from August 2013 to the low in December of 2015.

The longer-term formation still denotes the prospect of continued bullishness in Gold prices, albeit with the build of a symmetrical wedge formation as defined by both lower-highs and higher-lows over the past month-and-a-half (shown on the below chart in red). This element of consolidation ‘fits’ with the current macro landscape that has volatile expectations around Fed policy as the next FOMC meeting is more than a month away. This could present an environment devoid of the typical driver of bullish-movements in Gold prices (dovish Central Bank innuendo), and traders may want to moderate bullishness to look for a deeper support level.

The most recent support-swing took place in the $1,330-vicinity, and this coincides with a projected trend-line that forms the bottom of that symmetrical wedge formation. Should support show near this region, top-side plays in Gold could become attractive.

Gold Prices Wedging into Consolidation Near Resistance

Created with Marketscope/Trading Station II; prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES

News & Analysis at your fingertips.