- Gold reverses off pivotal constructional resistance- Initial support targets in view
- Updated targets cancellation levels
- Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)
Technical Outlook: In a last bullion update, we highlighted a hazard of a near-term pullback in bullion while next 1219 – a region, “defined by a 38.2% retracement of a Jul decrease and converges on a 50-line of a descending median-line arrangement off a 2013 2015 lows. The evident long-bias is during risk while next this threshold.” It’s usually Thursday, though if prices were to tighten a week during or next stream levels, bullion will have noted an outward weekly-reversal off resistance- bearish near-term.
Daily movement dissimilarity into this week’s highs serve highlighted a risk of a improvement in cost with a mangle next near-term support yesterday 1200 gripping a evident concentration reduce while below. Initial support is eyed during 1182 corroborated closely by a median-line fluctuating off a Mar 2016 high (red) now ~1177– both areas of seductiveness for near-term depletion / long-entries.
Notes: Bottom line: The risk stays reduce while within this arrangement within initial insurgency eyed during 1196 1207– (bearish invalidation). A crack above this pivotal segment would be indispensable to change a concentration behind towards topside targets during 1219, 1240/41 a 50% retracement during 1249. Keep in mind we have U.S. 4Q GDP on daub tomorrow with a recover expected to fuel combined sensitivity in dollar denominated assets. From a trade standpoint, we would be looking to possibly blur debility on a pierce into constructional support nearby 1177 OR blur a near-term convene towards 1207 for a pierce behind into a reduce parallels.
- A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are net prolonged gold- a ratio stands during +2.05 (67% of traders are long)- bearish reading
- Long positions are 5.5% aloft than yesterday though 2.1% next levels seen final week
- Short positions are 6.7% reduce than yesterday and 11.3% next levels seen final week
- Open seductiveness is 1.2% aloft than yesterday and 9.1% next a monthly average.
- Waning marketplace appearance suggests shorts were removing privileged out as a convene approached pivotal technical resistance. The near-term risk is weighted to a downside as prolonged sell seductiveness starts to build.
Looking for trade ideas? Review DailyFX’s 2017 1Q Projections
Other Setups in Play:
- EUR/USD Eyes 1.0580 Support Ahead of 4Q GDP
- NZD/USD Rally Vulnerable Ahead of 7300- New Zealand CPI on Tap
- AUD/USD Risks Exhaustion on Record Low Core Inflation
- AUD/JPY Reversal Targeting Initial Support Hurdle
- Webinar: Markets on Edge as Trump Assumes Office- USD Under Review
—Written by Michael Boutros, Currency Strategist with DailyFX
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