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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
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
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX!
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here:
  • The US Dollar may seesaw as investors navigate what could be a volatile week packed with US GDP data, rising Covid-19 cases, Q3 corporate earnings and more. Get your #currencies update from @ZabelinDimitri here:
  • USD/MXN pushes lower towards a critical support level in the midst of continued political uncertainty. Get your #currencies update from @HathornSabin here:
  • Gold Forecast - via @DailyFX “Gold price outlook still hinges on stimulus deal expectations and corresponding swings in real yields.” What will I have my eyes on in the week ahead? Link to Analysis: $GC_F $XAUUSD $GLD
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • Talks between the EU and UK restarted today and will continue over the weekend as negotiators from both sides battle against the clock. Get your #currencies update from @nickcawley1 here:
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here:
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here:
Gold Prices Still Flagging, Fall to Deeper Support

Gold Prices Still Flagging, Fall to Deeper Support

2016-10-03 17:50:00
James Stanley, Strategist

Talking Points:

  • Gold prices continue to trade within the bull flag formation that’s been operative since early-July.
  • While the bull flag denotes continuation potential of the move-higher, prices have been under pressure after setting another ‘lower-high’ to kick off last week.
  • If you’re looking for trading ideas, check out our Trading Guides. They’re free and updated for Q4.

In our last article, we looked at the bull flag formation that has built in Gold prices since early-July. At the time of that last article, Gold prices had just caught another jump-higher after a Federal Reserve meeting didn’t bring on the level of hawkishness that was anticipated and, in turn, brought weakness into the US Dollar. But as we warned, that move may not have staying power and traders would likely want to wait for either a top-side break of the bearish channel, or a deeper level of support in the effort of getting a cleaner entry.

We had specifically looked at the prior swing-low in the $1,312 range as a potential level of support; this was the swing-low in mid-September, and this was just above the prior swing-low set at the end of August. This brings up a potential setup in which traders can look to trade the trend-side bias in Gold prices whilst price action still remains within the channel. Traders can look at a stop below the $1,298.00 level of support, with an initial target to the prior swing-high of $1,327 to get a better than one-to-one risk reward ratio while price action remains in the flag formation. A secondary target can be set to the $1,342 level of resistance (the previous swing-high) to look for a better than 1-to-2.5 risk-reward ratio. And if we do, in fact, get the top-side breakout of the flag formation, traders can cast tertiary profit targets to the July swing-high of $1,375.04.

For traders that want to approach Gold more conservatively, they’d likely want to await a top-side break of the flag before investigating long positions. The same $1,342 level of resistance that set the previous swing-high could be an opportune zone to look for that next ‘higher-low’ level of support should Gold prices pose a top-side breakout. Alternatively, traders can wait for price action to move down to the long-term support zone in the $1,285 vicinity, which has multiple Fibonacci retracements and price action inflections over the prior seven months.

Gold Prices Still Flagging, Fall to Deeper Support

Chart prepared by James Stanley

--- Written by James Stanley, Analyst for DailyFX

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.