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
EUR/USD
Bearish
Oil - US Crude
Bullish
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
Bearish
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • 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: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
Gold Prices Recoil Shy of $1,296: Double Top Breakout in Store?

Gold Prices Recoil Shy of $1,296: Double Top Breakout in Store?

James Stanley, Senior Strategist

Talking Points:

- Gold Prices have put in an aggressive bullish movement, but have yet been unable to take out the double-top formation around $1,296.

- Current price action is finding support off a key Fibonacci level, but Gold prices have been moving violently around the recent theme of risk aversion.

- If you’re looking for trading ideas, check out our Trading Guides. And if you’re looking for ideas that are more short-term in nature, please check out our IG Client Sentiment.

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

Gold prices have been on quite the run over the past month. After bottoming out below $1,205 in July, buyers have returned with gusto to drive price action towards the double-top formation at $1,296. The move appeared to start as another gust of weakness was developing in the U.S. Dollar in the early part of the month; but more recently, an uptick in geopolitical tension drove an extreme bullish move in Gold prices as the yellow metal made a near-parabolic ascent towards that prior point of resistance (this is outlined in green on the below chart).

Gold Four-Hour: Bulls Return to Drive Prices Towards Double-Top Resistance at $1,296

Gold Prices Recoil Shy of $1,296: Double Top Breakout in Store?

Chart prepared by James Stanley

This near-term move of strength has also seen the longer-term descending channel taken-out, as Gold prices found support on the projection of the trend-line that exists from the July-November, 2016 highs. While price action peeked out of this channel previously in June, support didn’t show-up on the daily chart. Instead, prices ran into April resistance, at which point sellers took over. But the driver on that move appeared to be rather clear, as this took place right around the time of James Comey’s testimony in front of Congress.

Gold Daily: Support at Prior Resistance (Descending Trend-Line Projection)

Gold Prices Recoil Shy of $1,296: Double Top Breakout in Store?

Chart prepared by James Stanley

The driver behind the most recent incline in Gold prices appears to be jitters around the U.S. stand-off with North Korea over the DRRK’s nuclear ambitions. A tweet was sent last Tuesday around Noon Eastern Time in which U.S. President Donald Trump spoke on the matter, saying that nuclear threats from North Korea would be met with ‘fire fury, and frankly, power the likes of which the world has never seen’.

Gold prices promptly moved-higher after that tweet, and continued to run for the rest of the week. As we opened this week, a bit of calm showed across global markets and Gold prices retraced down to a key level of support. At $1,278.76 we have the 61.8% retracement of the July-December 2016 major move; and this level is helping to set near-term support so far on this early week.

Gold Prices Bid After Trump’s ‘Fire and Fury’ Tweet: Current Support at 61.8% Fib

Gold Prices Recoil Shy of $1,296: Double Top Breakout in Store?

Chart prepared by James Stanley

The challenge with the Gold trade at the moment is that this appears to be firmly-aligned with the global risk trade. As risk aversion shows with a bit more prominence, Gold prices have caught a significant bid to jump-higher on the back of that theme. This can be a difficult time looking for trend-continuation setups, as the move on both sides of Gold can be rather sharp.

For traders looking at taking on exposure in Gold, a breakout of the $1,296 double-top formation can open the door to bullish continuation strategies. A series of potential resistance levels residing above current prices can be used to allocate profit targets. The Fibonacci level at $1,315.60 could be particularly attractive to such an approach, as this is the 76.4% retracement from the same set of levels that helped to set current support.

Gold Daily: Potential Resistance Levels Above $1,296 Double-Top Applied

Gold Prices Recoil Shy of $1,296: Double Top Breakout in Store?

Chart prepared by James Stanley

--- Written by James Stanley, Strategist 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