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
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/lKvEMf4QRe
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here: https://t.co/GGVrB3r7if https://t.co/HPHUC8EG3o
  • 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: https://t.co/5uSWKoLkd6 https://t.co/q80wSAoxXP
  • 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: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • 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/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • 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/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
Gold Price Outlook: XAU Offers a Glimmer of Hope at Fresh 2019 Lows

Gold Price Outlook: XAU Offers a Glimmer of Hope at Fresh 2019 Lows

2019-04-23 19:00:00
Michael Boutros, Strategist
Share:

Gold prices have plummeted nearly 6% from the yearly high with today’s decline taking prices into multi-month trend support at fresh yearly lows. These are the updated targets and invalidation levels that matter on the XAU/USD charts this week. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and more.

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

Gold Daily Price Chart (XAUUSD)

Gold Price Chart - XAU/USD Daily - GLD

Technical Outlook: In my latest Gold Weekly Technical Outlook we noted that, “While a break of the monthly opening-range lows does keep the focus lower into the close of April,” price was approaching major support into fresh yearly lows. A break below the 1275/76 support zone was halted today at the August trendline support and leaves the immediate short-bias vulnerable while above this slope.

So, did Gold just bottom? A breach / close back above the yearly opening-range low at 1276 would be needed to alleviate further downside pressure targeting the January trendline (currently ~1285) backed by broader bearish invalidation at the 100-day moving average / monthly open at 1290/92. A downside break would keep the short-bis viable targeting more significant support at 1253/58- a region defined by the 100% extension of the yearly decline and the 50% retracement of the late-2018 advance. Look for a bigger reaction there IF reached.

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

Gold 120min Price Chart (XAUUSD)

Gold Price Chart - XAU/USD 120minute - GLD

Notes: A closer look at price action shows Gold trading within the confines of a descending pitchfork formation extending off the March / April highs with price responding to confluence support today at the lower parallel. It’s a make-or-break here.

A breach above near-term resistance targets the yearly open at 1280 backed closely by the median-line / 38.2% retracement at 1283 – a rally surpassing this threshold would be needed to shift the near-term focus higher targeting the monthly open & the upper parallels.

Learn how to Trade with Confidence in our Free Trading Guide

Bottom line: Gold has responded to near-term down-trend support and leave the immediate decline vulnerable while above today’s low. From a trading standpoint, good spot to reduce short-exposure and lower protective stops – be on the lookout for possible exhaustion off this low with a close above 1283 needed to suggest a near-term recover is underway. Continued weakness would keep the focus on 1258. Review our latest Gold 2Q forecasts for a longer-term look at the technical picture for XAU/USD prices.

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 Trader Sentiment - XAU/USD Price Chart - GLD Positioning
  • A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +2.68 (72.8% of traders are long) – bearishreading
  • The percentage of traders net-long is now its lowest since April 9th
  • Long positions are6.5% lower than yesterday and 6.6% lower from last week
  • Short positions are 0.9% higher than yesterday and 13.2% 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 and compared with last week. Recent changes in sentiment warn that the current Gold (XAU/USD) price trend may soon reverse higher despite the fact traders remain net-long.

See how shifts in Gold retail positioning are impacting trend- Learn more about sentiment!

---

Active Trade Setups

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex

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

DISCLOSURES