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
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • #BITCOIN pivot points (daily) – S3: 6165.06, S2: 6872.64, S1: 7148.71, R1: 7856.29, R2: 8287.8, R3: 8995.38- https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @JeffSnider_AIP: How's it going in repo? ICYMI, the Fed announced today a big increase in O/N caps to $125bln, and term operations upc…
  • (Asia Pacific AM Briefing) Yen May Gain After Tesla Earnings Beat as USD/CAD Eyes 2019 Low #Yen #Tesla $USDCAD - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/10/23/Yen-May-Fall-After-Tesla-Earnings-Beat-as-USDCAD-Eyes-2019-Low.html?CHID=9&QPID=917702 https://t.co/W2LpaYFUCA
  • $GBPUSD: A close above 1.3048 could resume bullish price action towards the vicinity of 1.3293-1.3300. Get your GBP/USD technical analysis from @malkudsi here:https://t.co/n1SMgMehvt https://t.co/PZWc8XeyVG
  • [Corr] South Korea GDP Y/Y came in at 2.0%, unchanged from the previous period while on a Q/Q basis it showed a weaker growth print at 0.4%, missing the 0.5% est.
  • The ECB rate decision is a top fundamental event risk later today. It is unlikely that they add on top of September's flood, but path of least resistance is sticking to range and retail traders are heavy bears: https://t.co/GCyvs6nYth
  • South Korea Q3 GDP shows 0.4% growth print Q/Q, missing 0.3% estimate - BBG #USDKRW
  • #Gold: Buyers have remained at bay, even with the $USD sell-off, as a bull flag formation has built around a 23.6% retracement of that recent major move.Get your $gld market update from @JStanleyFX here: https://t.co/tkY4716pfC https://t.co/mik1bjz3Fo
  • #BRL, #COP and the #CLP are expected to be the most active Latin American currencies vs USD with 1-week implied volatilities at 13.55, 10.30 and 10.06 respectively
  • RT @LiveSquawk: News Recap - - Some BOJ Policy Makers Want to Save Ammunition - WSJ https://t.co/zweqHl37Ij
Gold Price Targets: XAU/USD Defends Key Support- GLD Trade Outlook

Gold Price Targets: XAU/USD Defends Key Support- GLD Trade Outlook

2019-10-02 18:30:00
Michael Boutros, Technical Strategist
Share:

Gold prices rebounded off a critical support zone yesterday, shifting the near-term focus higher in XAU/USD. That said, the recovery keeps price within the confines of a descending pattern off the highs heading into Friday’s US Non-Farm Payrolls report and the bulls aren’t out of the woods yet. These are the updated targets and invalidation levels that matter on the XAU/USD charts this week.

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 - XAUUSD Technical Forecast

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

Technical Outlook: In my latest Gold Price Outlook we noted that the, “battle lines are drawn and the immediate focus is on a reaction here at 1522/26 with the gold price recovery at risk while below- watch the close.” XAU/USD plummeted more than 6% off the September highs before rebounding off a critical support confluence yesterday at 1460/61- a region defined by the 100% extension of the decline off the highs and the 61.8% retracement of the August rally and converges on the lower parallel. Note that daily momentum also held 40 on this last drop- So was that it?

Its decision time from here. Looking for resistance ahead of the May trendline IF gold prices are heading lower with bearish invalidation steady at 1522/26. A break below 1451 would ultimately be needed to fuel a deeper correction targeting 1433 – an area of interest for possible downside exhaustion / long-entries IF reached.

Gold Price Chart - XAU/USD 120min

Gold Price Chart - XAU/USD 120min - GLD Trade Outlook - XAUUSD Technical Forecast

Notes: A closer look at gold price action shows XAU/USD trading within the confines of a near-term descending pitchfork formation extending off the late-September highs. Note that the lower parallel further highlights the 1460/61 support zone defended yesterday with the current advance now breaking through the median-line. A breach here at 1494/96 exposes the 75% parallel / 61.8% retracement at 1506- look for a bigger reaction there IF reached. Initial support rests at 1475.

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

Bottom line: IF this pullback was corrective, these lows should hold. That said, taking a neutral stance here near-term from a trading standpoint. Look for exhaustion on a stretch towards confluence resistance at 1506- a reaction there should offer some guidance. Stay nimble here as we head deeper into the monthly / quarterly opening-range with US Non-Farm payrolls still on tap Friday. 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 - XAU/USD Price Chart

Gold Trader Sentiment - XAU/USD Price Chart - GLD Trade Outlook - XAUUSD Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +2.28 (69.6% of traders are long) – bearishreading
  • Long positions are2.9% lower than yesterday and 6.7% higher from last week
  • Short positions are1.2% lower than yesterday and 21.8% 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 less net-long than yesterday but more net-long from last week and the combination of current positioning and recent changes gives us a further mixed Spot Gold trading bias from a sentiment standpoint.

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

https://www.dailyfx.com/free_guide-tg.html?ref-author=Boutros

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

DISCLOSURES

News & Analysis at your fingertips.