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.

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
Subscribe
Please try again
Wall Street
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
More View more
Real Time News
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/6cn6OK6M7w
  • RT @Stephanie_Link: 84% of $SPX companies have beaten EPS estimates to date for Q3, which is tied for the 3rd highest percentage since 2008…
  • What is #NFP and how can you trade it? Find out: https://t.co/XJWS04IF9j https://t.co/iV9lPzPDtc
  • What does it mean when one candle fully engulfs the previous in its price action? The bullish engulfing candle is one of the forex market?€?s most clear-cut price action signals. Figure out how to identify this pattern here: https://t.co/Yg6ecRZZNr https://t.co/3J0xXp4axT
  • Oil maintains a medium-term bullish outlook, but its overbought condition and price's proximity to key technical resistance may pave the way for a brief pullback before the next leg higher. Get your weekly oil forecast from @DColmanFX here: https://t.co/sv2bMc34gI https://t.co/DDIoe4VhZ3
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/P3SduerCFF
  • The update to the US GDP report may keep the Greenback under pressure as signs of a slowing recovery undermines speculation for an imminent shift in Fed policy. Get your weekly USD forecast from @DavidJSong here: https://t.co/xvLr1bLfZG https://t.co/aQnOIoUM9t
  • There a many different trading styles that can be applied to trading forex. Learn about different types of traders here: https://t.co/xfzRCzuuKK https://t.co/GXxdkNEeCg
  • Hang Seng Tech Index has likely formed a bullish “Inverse Head and Shoulders” chart pattern. Immediate support and resistance levels can be found at 5,800 and 7,433 respectively. Breaching above 7,433 would likely bring 8,266 into focus. https://t.co/VsavFLj97V
  • The Nasdaq 100 index has likely formed a bullish “Butterfly” chart pattern, which hints at further gains. The MACD indicator is about to form a bearish crossover, suggesting that upward momentum may be weakening and thus vulnerable to a short-term pullback. https://t.co/J0PFLYzXR1
Gold Price Forecast: Gold Makes a Move on 1800 - XAU/USD Levels

Gold Price Forecast: Gold Makes a Move on 1800 - XAU/USD Levels

James Stanley, Senior Strategist

Gold, XAU/USD Talking Points:

  • Gold prices are ripping today after setting up in a bullish reversal formation coming into October trade.
  • Buyers should remain cautious of chasing here as there’ve been a number of bullish moves in Gold that have reversed of recent.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.

Gold prices are popping higher today, making a run at the 1800 psychological level. This comes as price action had built into a bullish reversal formation coming into the month of October, showing a falling wedge after support held at a key spot on the long-term chart. Falling wedges are often approached with the aim of bullish reversals and that’s continuing to fill in.

To learn more about falling wedges, check out DailyFX Education

Gold Eight-Hour Price Chart

Gold Eight Hour Price Chart

Chart prepared by James Stanley; Gold on Tradingview

Longer-term, there’s another bullish formation that’s even had some recent context, as a bull flag remains on bigger-picture charts, and prices have been grinding support at the topside of the channel making up the flag.

This fact is somewhat softened by the numerous false breaks that have shown off of this flag already; but with price action holding the 38.2% retracement of the 2018-2020 move, the door does remain open to longer-term bullish scenarios and that can mesh with the shorter-term bullish scenario looked at above with the falling wedge formation.

To learn more about bull flags, check out DailyFX Education

Gold Weekly Price Chart

Gold weekly price chart

Chart prepared by James Stanley; Gold on Tradingview

Gold Strategy: The Challenge

Gold topped out on August 7th of last year, putting in a bearish engulf on the Daily chart just after that all-time-high was set at 2075. Since then, there’ve been numerous fits and re-starts of the bullish trend with each ending up falling flat. Perhaps there’s been a shift in investor behavior where some are placing their inflation hedges elsewhere, such as Bitcoin. It’s likely at least somewhat related that the crypto space has really come to life since that high was set.

This doesn’t necessarily spell doom-and-gloom for Gold, but it is a fact worth keeping in mind that even as USD weakness reigned supreme in Q4 of last year, Gold prices remained very bearish. Gold finally bottomed at the end of Q1, right around the time that rates hit a fresh high in the US, and with rates receding in April and May, Gold prices got back on the bid for a test of the 1900 handle.

So, deductively, it seems that the biggest factor to the topside of Gold would be rates softening, which doesn’t appear to be a strong workable trend at the moment given how aggressively rates have moved up of recent.

For levels: Traders can follow tests of key resistance levels to get clues that buyers may be getting more and more aggressive. The first challenge would be a descending trendline connecting June and September swing highs, and this is right around the 1800 psychological level. A bit higher is a more pertinent level at 1834, which has already turned-around three different bullish advances. And if that gets taken-out, the 1900 level is in view and a break of 1920, the prior all-time-high before last year’s explosion would re-open the door for another run at all-time-highs.

Gold Daily Price Chart

Gold Daily Price Chart

Chart prepared by James Stanley; Gold on Tradingview

--- Written by James Stanley, Senior Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES