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Forex Signals

Gold’s Upward Channel Supports Buying – Checkout Buying Signal

The yellow metal prices extended its bullish overnight rally and still taking bid around above the 1,950 level. Let me remind you that the fall in U.S. tech stocks initially boosted the safe-haven metal’s rise during the previous session, pulling it up from a low of $1,927.20 to an overnight high of $1,959.35. 

The reason for the on-going bullish tone around the gold prices could also be associated with the broadly weaker U.S. dollar. However, the weaker tone around the U.S. dollar was mainly driven by the trader’s cautious sentiment before of the European Central Bank (ECB) meeting. Therefore, the market trading sentiment was being supported by the news that TikTok parent’s request to not push for the entire sale to the U.S. 

Furthermore, the U.S. State Department’s keeps doors open for Chinese students who don’t support their leading national party, after over 1,000 visa rejection. This also exerted a positive impact on the market trading sentiment and became the key events that kept the pressure on any additional gains in the yellow metal. The yellow metal prices are currently trading at 1,947.58 and consolidating in the range between 1,943.76 – 1,950.78. As we know, the market sentiment remains mostly positive, while the lack of catalysts and the pre-ECB attentiveness could also be considered as reasons for the recent gold pullback.

Despite the on-going Sino-American tussle and worries concerning the U.S. stimulus package, the market trading sentiment extended its previous session positive tone. It remained supportive of the combination of factors. As in result, the S&P 500 Futures print 0.30% gains to 3,404 by the press time. Hence, the reason for the risk-on market trading sentiment could be attributed to the positive headlines concerning TikTok. It should be noted that the TikTok’s parent Bytedance is in talks with the U.S. to avoid the full sale of the company. This eventually trimmed the safe-haven demand in the market. Also supporting the market tone could be the news that the U.S. showing willingness to keep doors open for Chinese students, those who don’t support their leading national party, after over 1,000 visa rejection. Apart from this, the recent news that Tokyo is considering easing virus-led lockdown also favors market trading sentiment.  

At the USD front, the broad-based U.S. dollar failed to maintain its previous day gaining streak and dopped on the day mainly due to the risk-on market sentiment. Moreover, the U.S. dollar losses could also be associated with cautious sentiment ahead of the European Central Bank (ECB) meeting taking place later in the day. However, the U.S. dollar losses kept the gold prices higher as the price of gold is negatively related to the price of the U.S. dollar. While , the U.S. Dollar Index that measures the greenback against a bucket of other currencies dropped by 0.10% to 93.165 by 11:54 PM ET (4:54 AM GMT).

Across the Pond, the tensions between China and the U.S., and India keep gaining market attention and challenged the market risk-on tone. The tensions between Sino-US were further fueled after President US Trump warned to “stand tough against the Dragon Nation” if he is re-elected. Elsewhere, the tussle between China and India still on in the background, while uncertainty over the Brexit deal keeps challenging the market risk-on sentiment, which might help further the safe-haven yellow metal.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic forecast for the foreseeable future. As per the latest report, there are approximately 28 million COVID-19 cases globally as of September 10. However, these fears keep hurt the positive trading sentiment. 

Looking ahead, the market traders will keep their eyes on updates surrounding the Sino-US tussle, as well as Brexit related headline. Simultaneously, the market traders seem cautious ahead of the ECB meeting as they await a strong positive message from the ECB, which is less likely, to keep the recent rise.


The yellow metal gold has disrupted the resistance mark of 1,935 level, and presently it’s meeting resistance at the 1,949 mark. A bullish violation of the 1,949 mark may trigger buying until the 1,958 level on the upper side. Whereas, the support extends to operate at 1,935 and 1,922. The U.S. Unemployment Claims and PPI data will be the main market mover for gold.

 

Entry Price – Buy 1954.54

Stop Loss – 1948.54

Take Profit – 1962.04

Risk to Reward – 1:1.25

Profit & Loss Per Standard Lot = -$600/ +$750

Profit & Loss Per Micro Lot = -$60/ +$75

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iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368

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Categories
Forex Signals

GBP/USD Closes Hammer Pattern – Eyes on 38.2% Fibo Level!


Entry Price – Buy 1.30403
Stop Loss – 1.29903
Take Profit – 1.31003
Risk to Reward – 1:1.2
Profit & Loss Per Standard Lot = -$500/ +$600
Profit & Loss Per Micro Lot = -$50/ +$60
Fellas, now you can check out forex trading signals via Forex Academy mobile app. Follow the links below.
iPhone Users: https://apps.apple.com/es/app/fasignals/id1521281368
Andriod Users: https://play.google.com/store/apps/details?id=academy.forex.thesignal&hl=en_US

Categories
Forex Signals

GBP/USD Signal Runs Against Us – Let’s Close Manually! 

Today in the early European trading hours, the GBP/USD currency pair failed to stop its previous session declining streak and took further offer below the 1.3100 level while represented 0.15% losses on the day mainly due broad-based U.S. dollar on-going strength. On the other hand, the reason behind the currency pair declines could also be associated with the coronavirus woes. The rising Brexit uncertainty also joined the on-going pessimism around the Cable and contributed to the currency pair losses. In the meantime, the reports that more than two years would be needed to reach pre-pandemic U.K. economy size also weighed on the Cable. At this particular time, the GBP/USD currency pair is currently trading at 1.3089 and consolidating in the range between 1.3064 – 1.3119.

At the Brexit front, the 7th-round of Brexit talks seemed to have collapsed without giving any clue over the tough issues like fisheries and a level playing. However, the reason could be associated with the latest disagreements over the U.K. truckers’ access to Europe. This, in turn, kept the traders cautious.

Also weighing on the quote could be the latest report that the U.K. economy will not fully recover from its on-going historic downturn for at least two years. Thus, there are little chances that the BOE will use negative interest rates to boost the upswing.

However, the downbeat trading sentiment could be attributed to the US-China, and Washington-Iran tussle. As per the latest report, the U.S. President Donald Trump urged to restore the U.N. sanctions on Iran. The Secretary of State Mike Pompeo also warned that the U.S. would hold Russia and China accountable if they even try to interfere in the Iran issue. 

Furthermore, the intensifying tensions between the U.S. and China also added a burden around the market trading sentiment. It is worth reporting that the U.S. President Donald Trump suspended the trade talks with China while White House Chief of Staff Mark Meadows confirmed that the trade talks would not happen soon. However, these lingering Sino-US tensions kept the equity market under pressure and gave the broad-based U.S. dollar a safe haven status.

As a result, the broad-based U.S. dollar flashed green and took the safe-haven bids on the day amid market risk-off sentiment. However, the U.S. dollar gains could also be associated with the U.S. Federal Reserve’s recent report, which pushed the U.S. Treasury yields higher and helped the U.S. dollar further.

Looking forward, the market traders will keep their eyes on the U.S. Jobless Claims, Philly Fed Manufacturing Survey, and the European Central Bank (ECB) policy meeting minutes, which will release later today. As well as, the headlines concerning the US COVID-19 aid package, virus figures, and Sino-American trade can also impact the pair’s movement.


We opened a sell signal in the GBP/USD pair as the pair broke below an upward trendline, which was supporting the pair at 1.3130 level. Closing of candles below this level was confirming the odds of selling bias in the market, but the pair started to reverse back before hitting our take profit. The recent bullish engulfing suggests bullish trend continuation, and it may lead to the GBP/USD prices until the 1.3135 resistance level. But until then, our signal won’t survive as our stop loss was 1.3124. Let’s close it manually now and wait for another trade setup. Good luck!