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
Mixed
Oil - US Crude
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
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/wSHeU7aRoX
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2.1% Previous: -7.7% https://www.dailyfx.com/economic-calendar#2020-07-13
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2.1% Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2,1% Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.93%, while traders in US 500 are at opposite extremes with 76.12%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TRp6GF9snQ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.32% 🇬🇧GBP: 0.27% 🇪🇺EUR: 0.24% 🇨🇭CHF: 0.16% 🇯🇵JPY: 0.09% 🇳🇿NZD: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/O81hxQPBpL
  • Heads Up:🇯🇵 Tertiary Industry Index MoM (MAY) due at 04:30 GMT (15min) Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.31% France 40: 1.23% FTSE 100: 0.94% Wall Street: 0.64% US 500: 0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/YSclbAH1mY
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/sBmNFhegO2
  • RT @DanielGMoss: Broad risk-on tilt seen during #APAC trade with the trade-sensitive $AUDUSD following #SP500 futures higher Haven-associa…
Gold Price Technical Outlook: XAU/USD Correction Approaching Support

Gold Price Technical Outlook: XAU/USD Correction Approaching Support

2020-05-27 15:30:00
Michael Boutros, Strategist
Share:

Gold Technical Price Outlook: XAU/USD Near-term Trade Levels

Gold prices have plummeted more than 2.2% this week with XAU/USD under pressure after turning from long-term uptrend resistance last week. While the risk remains for a deeper set-back, the sell-off is now approaching initial support hurdles that could interrupt the current decline. These are the updated targets and invalidation levels that matter on the XAU/USD technical charts in the days ahead. Review my latest Weekly Strategy Webinar for an in-depth breakdown of this gold trade setup and more.

Starts in:
Live now:
Jul 13
( 12:07 GMT )
Live Weekly Strategy Webinars on Mondays at 12:30GMT
Weekly Scalping Webinar
Register for webinar
Join now
Webinar has ended

Gold Price Chart - XAU/USD Daily

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

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

Technical Outlook: In my last Gold Price Outlook we noted that XAU/USD was, “in consolidation just below key resistance– from a trading standpoint, the risk remains for a deeper setback in prices while below the 1726.” A topside breach on May 14th briefly registered a high at 1765 before reversing with price now retracing more than 61.8% of the monthly range. The decline takes gold into parallel support of the dominant slope extending off the late April lows (magenta) – looking for a reaction here.

A break / close lower exposes the objective May open at 1685 backed by the monthly opening-range lows / pitchfork support at 1669 (key). Daily resistance now back at 1732 with a breach above the April highs at 1747 needed to challenge fresh highs in Gold.

Gold Price Chart - XAU/USD 120min

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

Notes: A closer look at Gold price action sees XAU/USD trading within the confines of an ascending pitchfork formation extending off the late-April lows with an embedded channel formation guiding this most recent decline. Initial support rests sat 1690/92 backed closely by 1685- risk for acceleration IF broken with such a scenario exposing the monthly lows at 1669. Initial resistance eyed at the 100% ext at 1714 backed by the upper parallel. Ultimately, a breach / close above the weekly open at 1735 would be needed to put the bulls back in control.

Gold Forecast
Gold Forecast
Recommended by Michael Boutros
Download our latest quarterly Gold Price Forecast
Get My Guide

Bottom line: Gold prices are in correction off the monthly / yearly high with the pullback now approaching initial levels of up-trend support. From a trading standpoint, look to reduce short-exposure / lower protective stops on a test of 1690s – look for topside exhaustion while within this channel IF price is indeed heading lower with a break below the monthly range-lows needed to fuel the next leg in price. Ultimately, a larger pullback may offer more favorable entries closer to uptrend support. Review my latest Gold Weekly Price 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 - GC Technical Forecast
  • A summary of IG Client Sentiment shows traders are net-long Gold- the ratio stands at +2.96 (74.78% of traders are long) – bearishreading
  • Long positions are 0.69% higher than yesterday and 3.99% lower from last week
  • Short positions are 9.82% lower than yesterday and 15.49% lower 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. Traders are further net-long than yesterday and last week, and the combination of current positioning and recent changes gives us a stronger Gold-bearish contrarian trading bias from a sentiment standpoint.
Gold BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 1% 0% 1%
Weekly 6% -5% 2%
Learn how shifts in Gold retail positioning impact trend
Get My Guide

---

Active Trade Setups

- Written by Michael Boutros, Technical 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.