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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here:
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here:
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:
Gold Price Trading Below 200-day, Price Support; May be a Wash-out Move

Gold Price Trading Below 200-day, Price Support; May be a Wash-out Move

Paul Robinson, Strategist

Gold Price Technical Outlook:

  • Gold trading below the 200-day MA & price support from 2011/12
  • Could this be a wash-out move before it turns around?
  • USD weakness hasn’t mattered, but that may change

Gold breaking support could be a wash-out move, watch USD

Gold traded below the 200-day SMA on Friday and is continuing its run of weakness to start the new week. The move lower also has support during the 2011/12 topping process getting breached. Could the sudden rush lower be a wash-out of weaker hands as price continues a corrective move in a bull market, or are we seeing the beginnings of a much larger top?

For now it appears to be too soon to call the August high the top, but it doesn’t mean it wasn’t. It’s just that tops tend to take some time to realize and lead to material declines. The generally bumpy price action since the August high hasn’t been overly aggressive to the downside. This bit of selling we are seeing in recent sessions though may be a wash-out move for sorts.

There is another level of support to watch here that could make up the bottom-side line of a bull-flag pattern that may later on help send gold much higher should it fully mature. But it will be important that gold holds here as it tests the bottom of the would-be pattern.

The correlation to the dollar has broken down significantly as both gold and the DXY are currently trading lower together. The 20-day correlation between gold and the DXY area a statistically significant 0.62, a reading that doesn’t often hold long before reverting back into negative territory.

But how will that play out? With the DXY probing below long-term support, we may see the USD’s influence on gold become a factor again and help push gold higher. It could of course play out in opposite fashion, or something in between. But do keep an eye right on gold as the DXY breaks big support at 91.74.

Gold Price Daily Chart (<200-day, price support; watch underside parallel)

Gold price daily chart

Gold Price Chart by TradingView

DXY Monthly Chart (dipping below long-term support)

DXY monthly chart

US Dollar Index (DXY) Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at@PaulRobinsonFX

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