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
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
GBP/USD
Mixed
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
Mixed
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • Heads Up:🇬🇧 GBP Unit Labor Costs (YoY) (2Q) due at 09:30 GMT (15min), Actual: N/A Expected: N/A Previous: 2.1% https://www.dailyfx.com/economic-calendar#2019-11-20
  • RT @mynamejd: SP500 earnings revisions up & down per sector - Source Refinitiv https://t.co/bvmlQCltkN
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.87%, while traders in US 500 are at opposite extremes with 79.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/06877Dk0Iz
  • Heads Up:🇪🇺 EUR ECB Publishes Financial Stability Review due at 09:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2019-11-20
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Gold: 0.37% Silver: 0.22% Oil - US Crude: -0.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Nl2cW4qqNE
  • US Dollar Selloff May Accelerate After #FOMC Minutes Released - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2019/11/20/US-Dollar-Selloff-May-Accelerate-After-FOMC-Minutes-Released.html
  • Copper Price Trend May Reverse on FOMC Minutes - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/11/20/Copper-Price-Trend-May-Reverse-on-FOMC-Minutes.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #copper #fomc
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.13% 🇨🇭CHF: -0.00% 🇪🇺EUR: -0.13% 🇨🇦CAD: -0.21% 🇳🇿NZD: -0.22% 🇦🇺AUD: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6ztmAWF3DV
  • $EURGBP broke through a congestive range it has been stuck in since around mid-October. What are the implications for the pair’s downside breakout and where is it heading? Get your market update from @ZabelinDimitri here:https://t.co/hHaGgulbQD https://t.co/CPQtpgNWUh
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.26% US 500: -0.27% France 40: -0.37% Germany 30: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/w3yUQukPaf
Gold Price Targets: XAU/USD Searches for Direction at Six-Year Highs

Gold Price Targets: XAU/USD Searches for Direction at Six-Year Highs

2019-09-04 15:30:00
Michael Boutros, Technical Strategist
Share:

Gold prices are carving a well-defined weekly holding a tight range just above a key pivot zone and while the broader outlook remains weighted to the topside, the advance may be vulnerable near-term. These are the updated targets and invalidation levels that matter on the XAU/USD charts this week. Review this my latest Strategy Webinar for an in-depth breakdown of this gold trade setup and more.

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

Gold Price Chart - XAU/USD Daily

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

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

Technical Outlook: In my latest Gold Price Outlook we noted that, “we remain neutral at these levels- look for possible topside exhaustion while below 1558 if price rebounds here with a break / close below 1522 needed to suggest a larger decline is underway.” A week later and price has continued to range just above a critical pivot zone we’ve been tracking for months now at 1522/26. Note that the September open registered at 1522 and further highlights the technical significance of this key threshold.

Initial resistance remains at 1558 with a break higher targeting longer-term objectives at the confluence of the upper parallel and the 61.8% retracement of the entire decline off the record 2011 highs at 1586. Keep in mind gold has now marked a third divergence high in price with daily RSI holding a multi-month support trigger. Weakness beyond the monthly open would risk a larger setback in gold prices with such a scenario targeting channel support around the 8/13 low near 1479 – an area of interest for possible exhaustion / long-entries IF reached.

Gold Price Chart - XAU/USD 240min

Gold Price Chart - XAU/USD 240min - GLD Trade Outlook - Technical Forecast

Notes: A closer look at gold price action shows XAU/USD trading within the confines of a well-defined ascending pitchfork formation we’ve been tracking off the July 17th / August 1st lows. Price is trading just below the median-line near 1550- a topside breach would once again expose 1558- look for a bigger reaction there IF reached. A break below the 61.8% retracement of the recent advance at 1516 risks a test of the lower parallel near 1510- we’ll reserve this threshold as our near-term bullish invalidation level.

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

Bottom line: Gold prices are trading just below the August highs and while the broader outlook remains weighted to the topside, the immediate advance remains vulnerable while below 1558 near-term. From at trading standpoint, the focus is on a break of the weekly opening-range – a downside break risks a deeper correction in price with a larger pullback to offer more favorable long-entries near trend support. A breach / close above 1558 is ultimately needed to mark resumption of the broader uptrend. Review my latest Gold Price Weekly Outlook for a closer look at the longer-term XAU/USD technical trading levels.

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 Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +1.45 (59.2% of traders are long) – weak bearishreading
  • Long positions are11.1% lower than yesterday and 3.9% lower from last week
  • Short positions are15.3% higher than yesterday and 6.4% higher 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Spot Gold 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

News & Analysis at your fingertips.