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Gold Prices Rebound as US Dollar Weakens

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Talking Points:

  • Gold Prices Rebound on US Dollar Weakness
  • Next Intraday Resistance Found at $1,250.06
  • Looking for additional trade ideas for gold and commodities markets? Read our 2017 Market Forecast

Gold prices are rebounding and trading to new weekly highs today, as the US Dollar continues to decline. Technically gold prices may now be seen as trending higher in both the short and long term. Yesterday’s bullish breakout saw gold closing back above both the 200 day MVA (simple moving average) and the 10 day EMA (exponential moving average). Currently the 10 day EMA is found at $1,235.74, and should be referenced as a value of support if prices continue to advance.

In the event of a price reversal, traders should first look for gold to trade back below the 10 day EMA. This would signify a bearish shift in momentum, and open prices to retest the 200 day MVA which is now found at $1,230.04. A move beyond $1,230.04 would have longer term bearish implications, at which point traders may begin to target the standing May low at $1,233.13.

Gold Prices, Daily Chart with averages

Gold Prices Rebound as US Dollar Weakens

(Created Using IG Charts)

Intraday analysis now has gold prices testing today’s R3 pivot found at $1,250.06. This pivot marks the last point of intraday resistance, and a breakout through $1,250.06 should be seen as technically significant. In a continued bullish scenario, traders may look for prices to next test key values of resistance including the May 3rd high at $1,257.05.

In the event of a bearish reversal, traders should look for gold to reverse beneath today’s R3 pivot. This opens up the commodity to trade back beneath both the R2 and R1 pivots, found at $1,244.62 and $1,241.33 respectfully. Traders should note that today’s central pivot is found at $1,235.95. While a move below this point would suggest a change in short term momentum, it would not place gold beneath its 10 day EMA however.

Gold Price, 30 Minute Chart and Pivots

Gold Prices Rebound as US Dollar Weakens

(Created Using IG Charts)

— Written by Walker, Analyst for DailyFX.com

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Analys från DailyFX

EURUSD Weekly Technical Analysis: New Month, More Weakness

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What’s inside:

  • EURUSD broke the ‘neckline’ of a bearish ‘head-and-shoulders’ pattern, April trend-line
  • Resistance in vicinity of 11825/80 likely to keep a lid on further strength
  • Targeting the low to mid-11600s with more selling

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Coming into last week we pointed out the likelihood of finally seeing a resolution of the range EURUSD had been stuck in for the past few weeks, and one of the outcomes we made note of as a possibility was for the triggering of a ’head-and-shoulders’ pattern. Indeed, we saw a break of the ’neckline’ along with a drop below the April trend-line. This led to decent selling before a minor bounce took shape during the latter part of last week.

Looking ahead to next week the euro is set up for further losses as the path of least resistance has turned lower. Looking to a capper on any further strength there is resistance in the 11825-11880 area (old support becomes new resistance). As long as the euro stays below this area a downward bias will remain firmly intact.

Looking lower towards support eyes will be on the August low at 11662 and the 2016 high of 11616, of which the latter just happens to align almost precisely with the measured move target of the ‘head-and-shoulders’ pattern (determined by subtracting the height of the pattern from the neckline).

Bottom line: Shorts look set to have the upperhand as a fresh month gets underway as long as the euro remains capped by resistance. On weakness, we’ll be watching how the euro responds to a drop into support levels.

For a longer-term outlook on EURUSD, check out the just released Q4 Forecast.

EURUSD: Daily

EURUSD Weekly Technical Analysis: New Month, More Weakness

—Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email bysigning up here.

You can follow Paul on Twitter at@PaulRobinonFX.

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Euro Bias Mixed Heading into October, Q4’17

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Euro Bias Mixed Heading into October, Q4'17

Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.

EURUSD: Retail trader data shows 37.3% of traders are net-long with the ratio of traders short to long at 1.68 to 1. In fact, traders have remained net-short since Apr 18 when EURUSD traded near 1.07831; price has moved 9.6% higher since then. The number of traders net-long is 15.4% lower than yesterday and 16.4% higher from last week, while the number of traders net-short is 0.4% higher than yesterday and 10.5% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EURUSD prices may continue to rise. Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed EURUSD trading bias.

— Written by Christopher Vecchio, CFA, Senior Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

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British Pound Reversal Potential Persists Heading into New Quarter

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British Pound Reversal Potential Persists Heading into New Quarter

Why and how do we use IG Client Sentiment in trading? See our guide and real-time data.

GBPUSD: Retail trader data shows 38.2% of traders are net-long with the ratio of traders short to long at 1.62 to 1. In fact, traders have remained net-short since Sep 05 when GBPUSD traded near 1.29615; price has moved 3.4% higher since then. The number of traders net-long is 0.1% higher than yesterday and 13.4% higher from last week, while the number of traders net-short is 10.6% lower than yesterday and 18.3% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBPUSD prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current GBPUSD price trend may soon reverse lower despite the fact traders remain net-short.

— Written by Christopher Vecchio, CFA, Senior Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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