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
GBP/USD
Bullish
USD/JPY
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
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • The Euro’s struggle to move higher against a range of currencies continues and without further support this is likely to continue into the year-end. Get your $EURUSD market update from @nickcawley1 here: https://t.co/myZ7R0eGUb https://t.co/12WJd53Cx4
  • The #Dow Jones moved confidently higher last week as it added onto recent gains. Now, #stocks will aim to continue their rally while enjoying support from prior all-time highs. Get your technical analysis on #equities from @PeterHanksFX here: https://t.co/Qb89HIWxBY https://t.co/HMguTvD157
  • How can you trade #forex after a major release? Find out: https://t.co/sdxcXb8q60 #tradingstyle https://t.co/LNcbvVhIc2
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/m763epaH2C
  • Crude #oil prices, $NOK and $SEK may rise if Donald Trump’s speech on trade war developments amplifies market buoyancy against the backdrop of critical US CPI and retails sales data. Get your market update from @ZabelinDimitri here:https://t.co/5rdK7xsQNq https://t.co/YnlQjKNZdS
  • RT @next_china: U.S., China chief trade negotiators spoke by phone on Saturday, Xinhua reports https://t.co/dMQtd0g4jY
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/xp8P9MmCgb
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
Gold Price Targets: XAU Breakout Stalls- Bulls at Risk into September

Gold Price Targets: XAU Breakout Stalls- Bulls at Risk into September

2019-08-30 14:00:00
Michael Boutros, Technical Strategist
Share:

Gold prices have surged nearly 23% off the April lows with price now attempting to breach a critical resistance zone we’ve been tracking for months now. These are the updated targets and invalidation levels that matter on the XAU/USD charts. Review my latestWeekly Strategy Webinar for an in-depth breakdown of this gold price setup and more.

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

Gold Price Chart - XAU/USD Weekly

Gold Price Chart - XAU/USD Weekly - GLD Trade Outlook - Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; Gold on Tradingview

Notes: In my last Gold Price Weekly Outlook we noted that XAU/USD was, “ in consolidation just below a major pivot zone and we’re looking for the breach to mark resumption of the broader uptrend- that said, the advance remains vulnerable near-term while below.” The focus remains on a key resistance confluence at 1522/26 where the December 2011 & 2012 lows converges on a pair of uptrend resistance slopes.

A breakout early in the week saw gold prices fail just pips ahead of the 1558 resistance target before pulling back with the immediate focus once again on the weekly close in relation to the 1522/26 confluence zone. Note that weekly momentum readings have reached the highest levels since the 2011 record highs in Gold and continues to suggest the advance may be at risk as price attempts to close, what would be, the fifth-consecutive weekly advance. While the broader outlook does remain constructive, at this point, things are a bit stretched up here.

A topside breach / weekly close above would keep the focus on subsequent resistance objective at 1558 and the key 61.8% retracement of the decline off the 2011 record highs at 1586- look for a bigger reaction there If reached. Failure to close above this key threshold this week would leave the risk for a deeper correction towards slope support at the highlighted trendline confluence around ~1465. Ultimately a larger pullback would have us targeting more favorable long-entries near trend support.

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

Bottom line:Watch the weekly close – IF price fails to hold above the 1522/26 zone, look for weakness back towards uptrend trend support into the start of September trade. From a trading standpoint, a good region to reduce long-exposure / raise protective stops – be on the lookout for possible topside exhaustion with a break back below the 2015 / 2016 trendline (red) resistance needed to suggest a more significant high was registered this week. A valid close above would keep the focus on the 1586 resistance target. Review my latest Gold Price Outlook for a closer look at the near-term XAU/USD technical trading levels.

Even the most seasoned traders need a reminder every now and then-Avoid these Mistakes in your trading

Gold Trader Sentiment (XAU/USD)

Gold Trader Sentiment - XAU/USD Price Chart - GLD Trade Outlook - Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long Gold - the ratio stands at +1.81 (64.5% of traders are long) – bearish reading
  • Long positions are 1.0% higher than yesterday and 5.2% lower from last week
  • Short positions are 6.5% lower than yesterday and 6.0% lower from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger Spot Gold-bearish contrarian trading bias from a sentiment standpoint.

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

---

Previous Weekly Technical Charts

--- Written by Michael Boutros, Technical 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

News & Analysis at your fingertips.