Categories
Forex Signals

Gold Closed 28 Pips – Brace for a Breakout Trade!

During Monday’s Asian trading session, the yellow metal prices failed to maintain their overnight bullish streak. They edged lower around the $1,855 level mainly due to the risk-on market sentiment, which tends to weaken the safe-haven yellow-metal prices as investors continuing a retreat from the safe-haven asset after renewed progress in U.S. stimulus measures.

Despite the ever-increasing infections of the covid strain outside the epicenter of Britain and South Africa, the market trading sentiment managed to stop its overnight negative performance and started to flash green on the day amid renewed hopes for additional U.S. fiscal stimulus measures. These hopes were triggered instantly after the incoming chairman of the U.S. Senate Budget Committee said that Democrats would use a rare procedural tactic to pass major parts of a Covid-19 relief package if Republicans refuse to move on the measure. In addition to this, the optimism over the rollout of vaccines for the highly infectious coronavirus disease was also exerting a positive impact on the market trading sentiment. As a result, the S&P 500 Futures print 0.20% intraday gains by press time of Asian session on the day.

At the USD front, the broad-based U.S. dollar failed to stop its long bearish bias and dropped further on the day as demand for the safe-haven assets declined amid progress toward agreeing on U.S. fiscal stimulus. Conversely, the declines in the U.S. dollar could be short-lived or temporary as the fresh COVID-19 worries and weak European economic data helps the safe-haven assets to stop t its bearish rally.


Gold traded in line with our forecast to test the support area of 1,850 level, but soon it started forming candles upward, supporting bullish reversal in the precious metal. Thus, we decided to close the trade manually with +28 pips. Soon we will open another position in gold to secure the next trade; let’s stay tuned. Good luck!

Categories
Forex Signals

Gold Supported Over Double Bottom – Brace for a Breakout Setup! 

During Friday’s Asian trading session, the safe-haven-metal failed to extend its previous-day winning streak and drew some offers near the $1,860 level as the Biden administration’s plans of huge spending to stimulate the U.S. economy undermined the safe-haven yellow-metal prices aggressively. It is worth recalling that the yellow metal refreshed a 2-week high on the previous day amid the weaker U.S. dollar, but the upticks were short-lived and temporary as the stimulus hopes and upbeat U.S. jobs data started to probe the gold bulls afterward. Besides this, the optimism over a possible coronavirus vaccine also played its major role in weakening the safe-haven yellow-metal prices. 

On the different page, the downbeat comments from U.S. President Joe Biden over the coronavirus condition, as well as the recently appointed US Centers for Disease Control and Prevention (CDC) Director’s fresh doubts over the availability of vaccines, were seen as the key factors that could help the yellow-metal prices to limit its deeper losses. Meanwhile, the heightened trade/political war between the U.S. and China could also play its positive role in supporting the safe-haven yellow metal.

Across the pond, the broad-based U.S. dollar bearish bias, triggered by the prospects of massive fiscal spending in the U.S., was also seen as one of the key factors that cap losses for the yellow metal as the price of gold is inversely related to the price of the U.S. dollar. As of writing, the yellow metal prices are currently trading at 1,862.74 and consolidates in the range between the 1,860.15 – 1,870.87.

Looking forward, the market traders will keep their eyes on preliminary readings of January’s activity numbers from the U.K., the U.S., and Europe for fresh directions. In addition to this, the updates about the U.S. stimulus package will also be key to watch. 


Daily Support and Resistance

S1 1834.44

S2 1851.21

S3 1860.76

Pivot Point 1867.99

R1 1877.54

R2 1884.76

R3 1901.54

Entry Price – Sell 1857.76

Stop Loss – 1863.76

Take Profit – 1850.26

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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

 

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Forex Signals

Gold Violates Daily High – Brace to Capture Buying Trade! 

The yellow metal managed to stop its overnight losses and drew some fresh bids around above mid-$1,800 level as the prevalent downbeat market trading sentiment, triggered by the worsening coronavirus (COVID-19) conditions Sino-US tussle, underpinned the safe-haven metal prices. Though, the equity market losses were further bolstered after the Chinese planned to extend the Hong Kong crackdown after the arrests of nearly 50 democrats during last week, which in turn, provided some additional support to the yellow metal prices. 

In the meantime, the chatters surrounding that the U.K. is considering to increase hardships for Chinese companies, via tightening laws on imports, which in turn, added further pressure on the market trading sentiment and underpins the precious metal. In contrast to this, the U.S. President-elect Joe Biden’s pledge to announce trillions of dollars in new COVID-19 relief measures keep easing doubts over the global economic fallout, which becomes the key factor that kept the lid on any additional gains in the yellow metal prices. Meanwhile, the jump in global vaccinations could also help the equity market to limit its losses. The yellow metal prices are currently trading at 1,856.94 and consolidating in the range between 1,841.51 – 1,858.30.

The global markets trading sentiment failed to stop its overnight negative performance and remained sour amid Sino-US-UK tensions and growing coronavirus fears. At the COVID-19 front, the number of global cases has exceeded 90.87 million as of Jan. However, approximately 22.6 million cases were only marked in the U.S., with over 22,000 American has died from the virus during the previous week. Considering the current condition of the virus, the authorities from more countries, such as Europe and China, tighter their lockdown measures, which positively impacted the yellow-metal prices. 

Besides the virus woes, the reason for the bearish trading sentiment could also be associated with the long-lasting US-China tussle, which is continuously picking pace as the US Trump administration plans more sanctions. On the other side, China has shown its dislike over U.S. interference in matters relating to Hong Kong and Taiwan. In addition to the U.S., the U.K. has also increased hardships for Chinese companies via tightening laws on imports. However, the fears of a full-fledged trade/political war between the U.S., U.K., and China have been weighing on the market trading sentiment and were seen as major factors that kept the gold prices higher.


Entry Price – Buy 1857.14

Stop Loss – 1851.14

Take Profit – 1864.64

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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

 

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Forex Signals

Gold Breakout Ascending Triangle Pattern – Bullish Bias Dominates! 

During Monday’s Asian trading session, the precious metal managed to extend its early-day positive performance and remained bullish around above the $1,920 level as the sharp rise in global COVID-19 cases and the possibility of more countries imposing tighter restrictions tend to underpin the safe-haven yellow metal. Meanwhile, the broad-based U.S. dollar weakness, triggered by the market upbeat mood, also played its key role in underpinning the gold prices as the price of gold is inversely related to the price of the U.S. dollar. However, the market trading sentiment was being supported by the optimism surrounding the coronavirus (COVID-19) vaccine, Brexit headlines, and the U.S. covid aid package. 

In that way, the upbeat market sentiment was seen as one of the key factors that kept the lid on any additional gold gains. Furthermore, the upticks in the gold prices could also be attributed to the escalating US-China tussles, which eventually lend some support to the safe-haven yellow metal. As of writing, the yellow metal prices are currently trading at 1,923.70 and consolidating in the range between 1,893.81 – 1,925.35.

The market trading sentiment managed to extend its last week’s positive performance and stay positive on the day as the U.S. stocks futures’ bullish appearance tends to highlight the risk-on sentiment. Behind this positive performance was the optimism surrounding the coronavirus (COVID-19) vaccine, Brexit headlines, and the U.S. covid aid package. Across the ocean, the latest upbeat prints of Asian activity numbers from Japan, South Korea, Indonesia, and Taiwan for December also played its major role in underpinning the market trading sentiment. However, the positive tone around the market sentiment favors the gold buyers via U.S. dollar weakness.

As a result of the risk-on mood, the broad-based U.S. dollar failed to gain any positive traction and remained bearish on the day. Meanwhile, the losses in the U.S. dollar were further bolstered by the easy money policy of the U.S. Federal Reserve and central bankers elsewhere. It is worth mentioning that the U.S. Federal Reserve is set to release the minutes from its December meeting on Wednesday. In that way, the market players will be looking for more detail on making their forward policy guidance more explicit and the chance of a further increase in asset buying in 2021. Hence, the losses in the U.S. dollar becomes the key factor that helps the gold to stay bid as the price of gold is inversely related to the price of the U.S. dollar. 

Elsewhere, the upticks in the gold prices could also be attributed to the concerns over the coronavirus (COVID-19) and tussles between the U.S. and China. The coronavirus (COVID-19) cases continue to rise, with above 85 million COVID-19 cases as of Jan. 4, with over 20.6 million cases of them in the U.S. Apart from the U.S., Japan is also gaining attention amid the recent surge in the cases and the death toll. As per the latest report, Japan recorded more than 3,100 new cases overnight. While Tokyo reported 816 new infections, bringing the cumulative total to 62,590, the largest among the country’s 47 prefectures so far. This, in turn, the government of Japan is seeking expert advice on whether to declare a state of emergency in Tokyo and neighboring prefectures. 

Looking forward, the market traders will keep their eyes on Caixin Manufacturing PMI for December, which is expected to reprint 54.9. Meanwhile, the second readings of monthly PMIs from Europe, the U.K., and the U.S. can decorate the calendar ahead. In addition to this, the updates about the U.S. stimulus package will be key to watch. In the meantime, the risk catalyst like geopolitics and the virus woes, not to forget the Brexit, will not lose their importance. 


Daily Support and Resistance

S1 1863.1

S2 1879.13

S3 1888.81

Pivot Point 1895.17

R1 1904.84

R2 1911.2

R3 1927.24

On Monday, the gold is trading sharply bullish at the 1,925 level. Gold has disrupted the ascending triangle pattern at the 1,898 mark on the daily chart, and now gold is likely to encounter resistance at 1,933 and 1,965 marks. The buying trend can be seen in gold, but unfortunately, our trades are closed at stop loss. I will be looking to take another buying trade once gold retraces back to 1,913 level. Good luck! 

Categories
Forex Signals

Gold Trade Choppy – Can Upward Channel Underpin? 

During Friday’s Asian trading session, the yellow metal prices failed to extend their overnight winning streak. They edged lower around the $1,880 level mainly due to the upbeat market sentiment, which tends to undermine the yellow-metal prices as investors continuing a retreat from the safe-haven asset after progress in U.S. stimulus measures and Brexit talks. Elsewhere, the reason behind the risk-on market sentiment could also be associated with the expectations for global economic recovery on potential coronavirus vaccines. 

In contrast to this, the widespread rise in the COVID-19 cases from the U.K., U.S., and Europe keeps challenging the market risk-on mood, helping the bullion prices limit their deeper losses. Apart from this, the US-China long-lasting tussle is also questioning the market upside momentum, which also caps further downside for the gold. Besides this, the broad-based U.S. dollar weakness has also played its major role in supporting the gold prices as the price of gold is inversely related to the price of the U.S. dollar. The yellow metal is currently trading at 1,883.14 and consolidating in the range between 1,878.60 – 1,886.06.

The news about vaccine rollouts was supporting the market trading sentiment. In the meantime, the progress on both Brexit trade talks and the latest U.S. stimulus measures also boosted the market trading sentiment, which tends to undermine the safe-haven metal prices. As per the latest report, House Speaker Nancy Pelosi said she hopes to receive the final legislative text on the deal later on Thursday. Whereas, President Donald Trump said by a tweet that stimulus talks were looking good. However, the lawmakers are now confident to approve the stimulus before the year-end. Additionally, the market trading sentiment was supported by the on-going hopes of the coronavirus vaccine. Thus the positive tone surrounding the market trading sentiment was seen as one of the key factors that kept the gold prices under pressure. 

At the USD front, the broad-based U.S. dollar failed to stop its long bearish bias and dropped towards its worst week in a month as demand for the safe-haven assets declined amid progress toward agreeing U.S. fiscal stimulus. It is worth mentioning that the U.S. dollar was down 1.2% for the week so far and has dropped by 12.7% from a 3-year peak in March, falling to 89.862, just above a 2-and-a-half-year low seen on the previous day. Besides, the U.S. dollar losses could also be associated with Powell’s dovish comments on inflation. The U.S. Federal Reserve’s promised to keep interest rates low until an economic recovery is secure. However, the U.S. dollar losses helped the yellow-metal prices limit its deeper losses as the price of gold is inversely related to the U.S. dollar price.

In contrast to this, the growing worries over the resurgence of the coronavirus pandemic have been destroying the hopes of the global economic recovery, which keeps challenging the market trading sentiment and help the yellow-metal prices to limit their deeper losses. On the other hand, the long-lasting tussle between the United States and China remains on the cards as the U.S. continuously imposing sanctions on Beijing. This, in turn, added further questions around the market trading sentiment and became the key factor that kept the lid on any additional losses in the safe-haven metal prices.

Looking ahead, the market traders will keep their eyes on U.K. Retail Sales m/m, which are scheduled for publicity later in the day. Meanwhile, the German PPI m/m data will also be key to watch. Apart from this, the updates surrounding the Brexit, virus, and U.S. stimulus package will not lose their importance. 



Daily Support and Resistance

S1 1807.17

S2 1827.65

S3 1840.79

Pivot Point 1848.13

R1 1861.27

R2 1868.61

R3 1889.09

The yellow metal gold is trading in between a tight range of 1,884 – 1,880 mark. Gold retraced downward to complete 38.2% Fibonacci level of 1,876. On the daily timeframe, gold has formed an upward channel supporting gold around 1,874 level along with a resistance level of 1,894 and 1,910 level. The 50 periods EMA holds around 1,864, suggesting an upward trend in gold; however, we are not opening a buying trade yet as the MACD forms histograms below 0, supporting a selling trend. Let’s consider taking a buying trade over the 1,874 level today. Good luck! 

 

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Forex Signals

Gold Trades Dramatically Bullish Over Risk-off Sentiment – Quick Intraday Outlook! 

The yellow metal gold price continued to extend their previous day’s bullish bias and took some modest offers around the $1,888.93 level—the bullion prices battle Wednesday’s high despite a U-turn from $1,844 post-Fed. However, the modest downtrend in the yellow-metal prices was mainly tied to the optimism surrounding U.S. coronavirus (COVID-19) stimulus and the upbeat Brexit headlines, which kept the market trading sentiment positive and undermined the safe-haven metal prices. 

Furthermore, the upbeat trading sentiment could also be associated with the optimism over a potential vaccine/treatment for the highly infectious coronavirus, which adds further burden around the safe-haven metal. Conversely, the long-lasting coronavirus (COVID-19) woes and the tussle between US-China keep questioning the market risk-on mood, which might give some support to the bullion prices to limit its deeper losses. Elsewhere, the broad-based U.S. dollar weakness could also be considered as one of the key factors that help the bullion prices to limit its deeper losses. The yellow metal prices are currently trading at the 1,888 level and still heading upward. 

Despite the widespread doubts over the global economic recovery from coronavirus (COVID-19), the market trading sentiment remained supportive by optimism over the rollout of vaccines for the highly infectious coronavirus disease. In addition to this, the growing hopes for additional U.S. fiscal stimulus measures also exerted a positive impact on the market trading sentiment, which undermined demand for the safest assets such as the U.S. dollar.

Across the pond, the reason for the risk-on market sentiment could also be attributed to the fresh reports suggesting that the U.S. Congress inched closer to the covid stimulus. It is worth mentioning that the Republicans and Democrats in Congress were reportedly “closing in on” approving a $900 billion stimulus bill on Wednesday, the most positive sign seen in months. Moreover, they are also working to pass a $1.4 trillion spending bill for the fiscal year starting on Oct. 1. by Friday to prevent a government shutdown.

At the USD front, the broad-based U.S. dollar failed to stop its previous day bearish bias. It drew further offers on the day as Fed Chair Jerome Powell passed cautious statements, indicating disinflation pressure while expecting the economy to strengthen in the second half of 2021. Apart from this, the Federal Reserve policymakers conveyed their dovish outlook for the long-term while showing a willingness to supporting the economy until they see “further progress” in employment and inflation. Meanwhile, the risk-on market sentiment also weighed on the U.S. currency. However, the U.S. dollar losses helped the gold prices to deeper its losses as the price of gold is inversely related to the price of the U.S. dollar. The U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.04% to 90.102 by 9:12 PM ET (2:12 AM GMT).

In contrast to this, the escalating market concerns regarding the continuous rise in new coronavirus cases in the U.S. and Europe keep fueling the doubts over the global economic recovery through imposing new lockdown restrictions on economic and social activity, which keep probing the upbeat market performance and lend some support to the safe-haven yellow metal. Apart from this, the fears of a full-fledged trade/political war between the U.S. and China also challenging the market risk-on mood, which also might help the yellow-metal prices to limit their losses.


Daily Support and Resistance

S1 1827.65

S2 1840.68

S3 1848.13

Pivot Point 1861.27

R1 1868.61

R2 1889.09

R3 1909.10

On the technical side, the precious metal has entered the overbought zone as it’s hitting the resistance level of 1,893 level. Closing of candle below this level is suggesting chances of a selling correction in gold; therefore, we can expect gold to drop until 1,875 level. The MACD and RSI are suggesting strong buying trend in gold, and we should look for buying trades actually, but the metal is overbought, and it should come down a bit before giving us further buying trades. Let’s consider taking buy over 1,880 level today and selling below 1,893 level. Good luck! 

Categories
Forex Signals

Overbought Gold Retraces Back – Is It Worth Buying?

During Wednesday’s Asian trading session, the yellow metal prices extended their bullish overnight rally and remained well bids around above the $1,850 level. Let me remind you that the bullion prices surged more than $20 an ounce for their biggest one-day gain in a week. However, the bullish sentiment around the gold prices was being supported by the weaker U.S. dollar as the price of gold is inversely related to the price of the U.S. dollar. 

The losses in the U.S. dollar was mainly tied to the progress toward a massive U.S. government spending bill and COVID-19 relief measures, which undermined demand for the safest assets such as the U.S. dollar. In the meantime, the optimism over the potential vaccine for the highly contagious coronavirus disease is also favouring the market trading sentiment, which also weakening demand for the safe-haven assets. Across the ocean, the intensifying US-China tussle and on-going Brexit uncertainty keep challenging the market’s upbeat mood and provides an additional boost to the safe-haven metal prices. 

Apart from this, the growing market concerns about the continuous surge in new coronavirus cases and the imposition of new restrictions also favouring the yellow-metal bulls. At this time, the yellow metal prices are currently trading at 1,857.76 and consolidating in the range between 1,850.94 – 1,858.37.

Despite the intensified Sino-US tussle, Brexit uncertainty, and worries over the coronavirus (COVID-19) cases, the market trading sentiment keeps its previous-session positive performance and remained well-supportive by the combination of factors. However, the reason could be associated with the latest reports suggesting that the lawmakers stepped again to try and get Covid-19 relief through Congress after several failed attempts. 

As per the latest report, House of Representatives Speaker Nancy Pelosi, a Democrat, hosted Senate Majority Leader Mitch McConnell, a Republican, as well as Senate Democratic leader Chuck Schumer and House Republican leader Kevin McCarthy, gathered to end the long-standing deadlock on the coronavirus relief package at the 7:30 p.m. E.T. (0030 GMT). Wherein, McConnell said that lawmakers would not leave the rooms without a fiscal stimulus deal, which could be attached to the government funding bill.

Apart from this, the reason for the gains in equity markets could be attributed to the optimism over the rollout of vaccines for the highly contagious disease. This, in turn, was seen as one of the key factors that exerted selling pressure on the yellow metal prices. It should be noted that the Moderna is set for getting approval by the U.S. Food and Drug Administration (FDA). Chatters that the FDA approved first fully at-home virus test also favoured the market trading sentiment.

At the USD front, the broad-based U.S. dollar dropped to near two 1/2-year lows as progress toward the massive U.S. government spending bill, and COVID-19 relief measures undermined demand for the safest assets. The U.S. dollar will likely face further losses as the fiscal stimulus has a more substantial trickle-down effect than monetary policy, which usually lifts inflation expectations. Conversely, if the lawmakers fail again to reach an agreement, investors could turn risk-averse, which will be seen as bullish for the USD currency. Moreover, the losses in the U.S. dollar could also be associated with lingering doubts over the U.S. economic recovery from COVID-19. However, the losses in the U.S. dollar kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar. Meanwhile, the U.S. dollar index, which measures the greenback against a bucket of currencies, was last at 90.477, after falling as low as 90.419 on Monday.

In contrast to this, the fears of rising COVID-19 cases in the U.S., Europe, and some of the notable Asian nations continually fueling the fears of renewed lockdowns in several countries. In the meantime, the U.S. new travel restriction over the Chinese Communist Party members and their families and a ban on Xinjiang cotton imports keep challenging the market risk-on mood. The tension between Sino-US further escalated after MSCI showed readiness for delisting 10 Chinese companies from its global investable markets indexes. These negative factors keep challenging the market risk-on tone and become the key factor that helps the gold prices to stay bid.


Daily Support and Resistance

S1 1807.17

S2 1827.65

S3 1840.79

Pivot Point 1848.13

R1 1861.27

R2 1868.61

R3 1889.09

Gold prices traded bullish at 1,860 level, supported over 1,848. It’s the same level that worked as resistance in the past, and now it’s working as a support for gold. On the lower side, the precious metal gold is likely to bounce off over 1,848 level as the 50 EMA is also expected to extend support here. For now, the MACD histograms are smaller but staying in buying zone. Let’s consider taking buying position over 1,848 level today with a stop below 1,845 level. Good luck! 

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Forex Signals

Gold Signal Hit Take Profit – Risk-off Sentiment In Play! 

The yellow metal prices managed to stop its previous day losing streak and took some modest bids around well above the $1,830 level mainly due to the broad-based U.S. dollar weakness, which tends to underpin the gold prices as the price of oil is inversely related to the price of the U.S. dollar. However, the sentiment around the U.S. dollar was being pressured by the optimism over the coronavirus vaccine and the probability of U.S. economic stimulus measures, which urge investors towards riskier currencies and higher-yielding assets against the safe-haven asset.

Across the pond, the downbeat market trading sentiment, driven by the worsening coronavirus (COVID-19) conditions in the U.S. and Europe, also keeps the gold prices well bid. Apart from this, the equity markets’ losses were further bolstered by the US-China tussle, which eventually lends some additional support to the yellow metal prices. On the contrary, the optimism over a possible vaccine and treatment for the highly infectious coronavirus keeps challenging the market risk-off mood, which might cap further upside momentum for the gold prices. The yellow metal prices are currently trading at 1,836.17 and consolidating in the range between 1,833.80 – 1,842.54.

However, the global markets’ sentiment failed to extend its previous-day positive performance and turned sour amid renewed Sino-US tensions and growing coronavirus fears. As per the latest report, America blacklists the Chinese crime boss and some other diplomats from Beijing in an anti-corruption sanction crackdown, which instantly fueled the Sino-US tension and weighed on the market trading sentiment. In addition to this, the U.S. and Europe still not refraining from imposing back-to-back lockdown, which threatening to undermine economic recovery as lockdown restrictions tend to have an instant negative effect on economic activities. In the meantime, the lingering uncertainty over the Brexit trade talks also exerted downside pressure on the global equity market. Thus, all these factors weigh on the market trading sentiment, which could be considered the main factors for the gold on-going bullish moves.

Despite the risk-off-market sentiment, the broad-based U.S. dollar failed to stop its previous session declining streak and remained bearish on the day as doubts persist over the global economic recovery from COVID-19. Furthermore, the U.S. Federal Reserve’s expectations of further monetary easing also weigh on the U.S. dollar. Besides this, the encouraging data from COVID-19 vaccine developers urge investors towards riskier currencies and higher-yielding assets against the safe-haven asset, which eventually leads to losses in the safe-haven U.S. dollar. However, the U.S. dollar losses become the key factor that kept the gold prices higher as the price of oil is inversely related to the price of the U.S. dollar. Meantime, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies dropped to 91.052.

In contrast, the losses in the global risk sentiment were capped by the latest reports suggesting that the U.S. Food and Drug Administration (FDA) will meet later in the day to talk about BNT162b2, the COVID-19 vaccine co-developed by Pfizer (NYSE: PFE) and BioNTech SE (F:22UAy). While Canada also approved its first COVID-19 vaccine on Wednesday and said inoculations would start next week, which also helps the market sentiment limit its deeper losses.


Daily Support and Resistance

S1 1838.47

S2 1853.58

S3 1861.99

Pivot Point 1868.69

R1 1877.1

R2 1883.8

R3 1898.91

Gold prices dropped amid the greenback’s strength versus another important trading instrument in the nonexistence of any further U.S. fiscal incentive to support the rollback within the coronavirus pandemic. Gold is currently trading at the 1,836 mark, facing immediate resistance at the 1,851 level along with a support level of 1,828 and 1,824. The U.S. Inflation data may help determine further gold trends now; nonetheless, the technical side seems bearish today.

Categories
Forex Signals

Gold Violates Ascending Triangle Pattern – Signal Update

The yellow metal prices succeeded in stopping its previous 3-day losing streak and recovered from monthly lows of $1,764.73 to $1,764.73 level mainly due to the broad-based U.S. dollar weakness, triggered by hopes of more monetary easing measures from the U.S. Federal Reserve. Moreover, the concerns over the economic recovery amid intensifying coronavirus cases also exerted downside pressure on the U.S. dollar, which eventually lend support to the yellow-metal prices as the weaker USD tends to make it cheaper holders of other currencies to purchase the yellow-metal. Across the pond, the mixed market trading sentiment, driven by the negative comments of Fed Chair Jerome Powell and U.S. Treasury Secretary Steve Mnuchin, lend some additional support to the safe-haven metal. In the meantime, the worsening coronavirus (COVID-19) conditions in the U.S. and Europe also keeps the gold prices bullish.

Apart from this, the western tussle with China and uncertainty over the Brexit trade deal also probed the market’s positive performance and contributed to its gains. On the contrary, the optimism over a possible vaccine and treatment for the highly infectious coronavirus keeps challenging the market’s bears, which was seen as one of the key factors that kept the lid on any additional gains in the yellow metal prices. The yellow metal prices are currently trading at 1,786.03 and consolidating in the range between 1,775.87 – 1,788.37.

However, the sentiment around the global markets remains mixed amid stimulus concerns and growing coronavirus fears, as well as the negative comments of the Fed Chair Jerome Powell and U.S. Treasury Secretary Steve Mnuchin also kept the market trading sentiment cautious. It should be noted that the Fed’s Powell and Treasury Secretary Mnuchin both said during Monday’s testimony in front of the Senate Banking Committee that the economy is on the way to recovery but needs additional help to stay on track. In the meantime, Mnuchin urged Congress to use $455 billion from the CARES Act to present the much-needed stimulus to the world’s biggest economy.

Daily Support and Resistance
S1 1735.75
S2 1755.61
S3 1766.35
Pivot Point 1775.48
R1 1786.22
R2 1795.34
R3 1815.21


The precious metal gold is violating the ascending triangle pattern on the four hourly timeframes, extending resistance at the 1,792 level. Over this level, the gold price may head further higher until the 1,818 level; therefore, we have entered the buying trade in gold. Check out the trade plan below.

Entry Price – Buy 1792.46

Stop Loss – 1786.46

Take Profit – 1799.96

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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

XAU/USD Concludes Bullish Engulfing Over Intraday Resistance – Signal Update 

The yellow metal gold soared 1% to its highest in a week as traders confidence that a U.S. coronavirus aid package will be announced before the Nov. 3 presidential elections urged the dollar and supported bullion’s appeal as an inflation hedge.

On the contrary, the broad-based U.S. dollar strength has become the factor that helps the currency pair limit its deeper losses. Moreover, the bullish tone around the U.S. dollar was sponsored by Thursday’s released upbeat U.S. jobless data, which showed a larger than expected drop in the initial jobless claims. 


Daily Technical Levels

Support Resistance

1902.14 1923.14

1888.87 1930.87

1881.14 1944.14

Pivot point: 1909.87

Gold is fell dramatically on the bearish side, dropping from the 1,930 mark to the 1,912 level. It’s a support mark that’s prolonged by a previously disrupted symmetric triangle pattern. On the lower side, the 1,912 support level violation may trigger more selling until the 1,897 level today.

Entry Price – Buy 1909.86

Stop Loss – 1903.86

Take Profit – 1915.86

Risk to Reward – 1:1

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

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

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Forex Signals

Gold Bounces Off Over Support Level of 1,912 – Time to Go Long! 

The yellow metal gold has traded sharply bearish, dropping from the 1,930 mark to the 1,912 level. Gold gained support at 1,912, the same level that extended support previously after a violation of a symmetric triangle pattern. Gold fell despite a dip in the U.S. stocks as they posted modest losses after a choppy session. The Dow Jones Industrial Average fell 98 points (-0.35%) to 28210, the S&P 500 dropped 7 points (-0.22%) to 3435, and the Nasdaq 100 eased 12 points (-0.11%) to 11,665.

On the forex front, the U.S. dollar widened its weakness against other major currencies amid a looming fiscal stimulus deal. The ICE Dollar Index dropped 0.48% to a 7-week low of 92.61, posting a four-session losing streak. 

The U.S. Federal Reserve said in its Beige Book economic report that all districts have seen continued growth at a moderate pace since the downturn. The central bank added that employment increased across all districts, and prices rose modestly.

Daily Technical Levels

Support Resistance

1902.14 1923.14

1888.87 1930.87

1881.14 1944.14

Pivot point: 1909.87

On the downside, the 1,912 support level’s breakout may trigger further selling unto the 1,897 mark today. Conversely, gold has solid probabilities of jumping off above the 1,912 level to trade bullish unto the 1,930 level. Let’s look for bullish trades over the 1,909 level today.



Entry Price – Sell 1920.15

Stop Loss – 1914.15

Take Profit – 1926.15

Risk to Reward – 1:1

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

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

 

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Forex Signals

Gold Breakout of Symmetric Triangle Pattern – Brace for Buying!


Entry Price – Buy 1904.88

Stop Loss – 1898.88

Take Profit – 1910.88

Risk to Reward – 1:1

Profit & Loss Per Standard Lot = -$400/ +$400

Profit & Loss Per Micro Lot = -$40/ +$40

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

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Forex Signals

Gold Upward Channel Supports Buying in Gold – Brace for Buying! 

The yellow metal prices failed to extend its previous session winning streak and edged lower around $1,919 during the European trading session. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the yellow-metal fresh selling bias. The gains in the U.S. dollar came into existence after the U.S. House Speaker Pelosi rejected Friday’s proposal from Trump, concerning the coronavirus (COVID-19) aid package worth near $1.8 trillion. 

Besides this, the market risk-on sentiment, backed by the hopes of Trump’s health recovery from the COVID-19 infections, also weighed on the yellow metal price. Subsequently, the logic behind the risk-on market sentiment could also be connected with the vaccine’s positive reports and treatment for the extremely infectious coronavirus. On the contrary, the prevalent rise in the COVID-19 cases from the U.K. and Europe and the no-deal Brexit fears keep challenging the market risk-on sentiment, helping the bullion prices limit its deeper losses. Apart from this, the US-China long-lasting tussle also questions the market sentiment upside momentum, which also caps further downside for the gold. AS of writing, the yellow metal prices are currently trading at 1,921.49 and consolidating in the range between 1,919.20 – 1,933.37.

Even though the U.S. House Speaker Nancy Pelosi refused Friday’s U.S. President Donald Trump’s aid package proposal of $1.8 trillion, the market trading sentiment remains positive, possibly due to the positive reports suggesting that the Trump had fully recovered from his bout with COVID-19. These hopes were further fueled after his physician Sean Conley stating that he is no longer an infection risk. This, in turn, boosted the market trading sentiment and undermined the safe-haven metal prices.

Additionally, the market trading sentiment was supported by the hopes of the coronavirus vaccine. Thus the positive tone surrounding the market trading sentiment was seen as one of the key factors that kept the gold prices under pressure. 

Despite the upbeat market sentiment, the broad-based U.S. dollar succeeded in extending its previous-session gains and took further bids on the day amid the stalled stimulus talk that tends to underpin the U.S. dollar. However, the U.S. dollar gains could be short-lived or temporary as concerns over the economic recovery could be stopped because of the resurgence of coronavirus cases and U.S. post-election uncertainty. Although, the U.S. dollar gains kept the gold prices under pressure, as the price of gold is inversely associated with the U.S. dollar price. 

On the contrary, the worries over the resurgence of the coronavirus pandemic have been destroying the support of the global economic improvement, which holds challenging the market trading sentiment and help the yellow-metal prices to limit its deeper losses. As per the latest report, France reported record 27,000 new cases while German infections are surging by the most since April.

At the US-China front, the long-lasting tussle between the United States and China remain on the cards as both parties continuously using very harsh words for each other. This, in turn, added further questions around the market trading sentiment and became the key portion that held the cap on any additional losses in the safe-haven metal prices.


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

The yellow metal gold has risen sharply to trade at 1,928 marks; however, the neutral candle’s closing beneath 1,932 levels implies mixed inclination among traders. Gold is traded over 1,919 levels, and closing of candles beyond 1,919 mark may induce an upward shift in the market. On the upper side, a breach of 1,932 may drive gold higher towards 1,943 and 1,952 marks. In contrast, a bearish breakout of 1,919 levels may lead the gold price towards 1,907 levels today. Mixed bias prevails due to holidays in the United States. Good luck! 

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Forex Signals

Overbought Gold Braces for Bearish Correction – Brace for a Sell! 

The yellow metal prices extended its early-day bullish rally and remained well bids around above the 1,900 level. However, the bullish sentiment around the bullion prices could be associated with the broadly weaker U.S. dollar. The risk-on market sentiment undermined that. Meanwhile, the U.S.’s prevailing political uncertainty also pushed the U.S. dollar down for the second consecutive day. Thus, the U.S. dollar losses could be considered one of the key factors that kept the gold prices higher as the price of gold is inversely related to the price of the U.S. dollar. Apart from this, the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe also favoring the yellow-metal bulls. 

In the meantime, the U.S. geopolitical tension with the Middle East and China provided an additional boost to the safe-haven metal prices. On the contrary, the optimism over a potential vaccine/treatment for the highly infectious coronavirus and hopes of the further stimulus package keep the market trading sentiment bullish, which could be considered as the key factor that cap further upside momentum for the gold prices. Whereas, the Trump recovery from the COVID-19 infection also offers an additional reason for the market traders to remain hopeful. The yellow metal prices are currently trading at 1,909.87 and consolidating in the range between 1,893.78 – 1,912.96.

Despite the ongoing Sino-US tussle and worries concerning the coronavirus (COVID-19) crisis, the market trading sentiment extended its early-day positive tone and remained supportive by combining factors. As in result, the S&P 500 Futures gain over 0.40%, whereas Japan’s Nikkei slips four points to 23,643 as of writing. Hence, the basis for the risk-on market trading bias could be connected to the positive headlines implying that the discussions between House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the U.S. stimulus package resumed overnight. While President Donald Trump announced that discussions with Congress have resumed despite stopped the coronavirus (COVID-19) stimulus talks until the Nov. 3 presidential election. However, this helped the market’s risk sentiment and undermined the U.S. dollar’s safe-haven demand.

Apart from this, Trump continues to recover from the COVID-19 infection. Whereas the White House physician Sean Conley said that Trump completed his therapy course, and his condition remains stable since returning to the White House on Monday.

Across the ocean, the tensions between the U.S. and China and the surge in the coronavirus (COVID-19) numbers in the U.K. and Europe keep challenging the market risk-on tone. Although the Dragon Nation has recently started facing global pressure against its treatment of Uighur Muslims, 18 Iranian banks were sanctions off-late by the U.S. State Department to curb Tehran’s financial access help further safe-haven yellow metal.

At the coronavirus front, the ongoing rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable tomorrow. As per the latest report, Spanish Prime Minister (PM) Pedro Sánchez announced a state of emergency in Madrid while the calls of closing the pubs and restaurants in the U.K. have been out and clear off-late. Looking forward, the market traders will keep their eyes on updates surrounding the Sino-US tussle and stimulus headlines. Whereas China’s return and Caixin Services PMI will be key to watch. In the meantime, the 


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

Gold has risen distinctly to trade at 1,912 marks, but the neutral candle’s closing below 1,912 levels implies mixed bias amongst traders. Hence, another formation of bearish engulfing or tweezers top pattern may begin bearish correction/retracement in gold. On the downside, gold may gain support at 1,906 and 1,899. Conversely, a bullish breakout of 1,912 stand-level may prolong the buying trend until the 1,919 level.

Entry Price – Sell 1909.74

Stop Loss – 1915.74

Take Profit – 1902.24

Risk to Reward – 1:1

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

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

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

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Forex Signals

Gold Bullish Bias Continues – Upward Channel Plays! 

Today in the European trading session, the yellow metal prices succeeded in stopping its early-day losing streak and took some modest bids in the last hour near above the 1,915 level. However, the overall bullish tone around the bullion prices could be associated with the broadly weaker U.S. dollar as the gold price is inversely related to the U.S. dollar price. The U.S. dollar was being pressured by the upbeat market mood, as well as, the hopes for the latest U.S. stimulus measures also kept the U.S. dollar under pressure. 

Apart from this, the U.S. political uncertainty ahead of the presidential election on November 3 kept challenging the market risk-on tone and helped the safe-haven metal. On the contrary, the overnight optimism that the U.S. President Donald Trump discharged from the hospital becomes the key factor that kept the lid on any additional gains in the yellow metal prices. The yellow metal prices are currently trading at 1,916.65 and consolidating in the range between 1,906.76 – 1,918.09.

However, the market trading sentiment kept struggling to extend its previous session positive bias and remained supportive by the latest optimism over the U.S. President Donald Trump’s return to the White House following a 3-day hospital stay due to coronavirus infection. Apart from this, the expectations of further stimulus from America also positively impacted the market trading sentiment. These hopes could be considered as one of the key factors that undermining safe-haven assets, including gold.

Across the Pond, the tensions between China and the U.S. keep gaining market attention and challenged the market risk-on tone. The renewed US-China tussle at the US-China front keeps challenging the market risk mood, adding further pessimism around the currency pair. As per the latest report, the Dragon Nation continues criticizing the U.S. ban on TikTok and WeChat at the World Trade Organization (WTO). These conflicting headlines might help the safe-haven metal prices by increasing the safe-haven demand in the market.

Elsewhere, the upbeat US ISM Services PMI data failed to leave any major impact on the market as the U.S. dollar hit a fresh low. At the USD front, the broad-based U.S. dollar remained depressed as the investors continue to sell U.S. dollars in the wake of the low safe-haven demand in the market. Looking forward, the market traders keeping their eyes on the Fed Chair Jerome Powell’s scheduled speech. In the meantime, the updates surrounding the fresh Sino-US tussle, as well as the coronavirus (COVID-19), could not lose their importance.


Daily Support and Resistance

S1 1847.32

S2 1874.78

S3 1887.18

Pivot Point 1902.24

R1 1914.64

R2 1929.7

R3 1957.16

The yellow metal gold continues to trade bullish at 1,911 levels. The formation of candles beyond the 1,908 mark is likely to support the gold today. On the 4 hour chart, candles closing below 1,908 mark are expected to drive more selling till 1,900 levels, while the bullish breakout of 1,917 resistance may ascertain the next trend in the market. Although we opened a sell trade during the European session in gold, we soon realized that it’s not worth holding gold as it’s forming a bullish setup. The bullish bias remains solid above 1,908. Good luck! 

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Forex Signals

Gold Exhibits Massive Volatility as Trump Tests COVID Positive – NFP Ahead! 

The yellow metal prices extended its Thursday’s winning streak and took further bids around well above the $1,900 level, mainly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning the U.S. and China relationships. In the meantime, the COVID-19 and Brexit story’s pessimistic signals also weighed on the market trading sentiment. This, in turn, helped the gold prices to put safe-haven bids.

Furthermore, the latest headlines surrounding U.S. President Donald Trump’s infection of the coronavirus (COVID-19), as well as the U.S. policymakers’ inability to break the coronavirus (COVID-19) stimulus deadlock, provided a further boost to the safe-haven metal prices. On the contrary, the broad-based U.S. dollar strength, backed by the combination of factors, becomes the key factor that capping further upside momentum for the gold. The precious metal prices are currently trading at 1,912.43 and consolidating in the range between 1,889.93 – 1,917.12. However, the bullion traders seem inactive to place any strong position amid Beijing’s Golden Week holidays.

The equity market has been flashing downbeat signals since the day started and ending this week with losses, witnessed by the S&P 500 Futures’ negative performance. However, many downbeat catalysts kept the market trading sentiment under pressure. Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus issues, the market trading sentiment flashing red on the day, which ultimately keeps the safe-haven assets supportive.

At the US-China front, the Sino-China tensions further bolstered after the news that the Americans Senators are pushing for a trade deal with Taiwan over China, which can renew the Sino-American tension. Additionally, the Financial Times (F.T.) spots a massive deployment of military forces in Hong Kong to tame the democracy protest, indicating an acceleration in the Sino-US tension and heavy the market’s mood.

Nevertheless, the grounds for the downbeat trading sentiment could also be attributed to the prevalent coronavirus (COVID-19) woes, which fueled the worries about the global economic recovery. The global death toll has crossed the 1 million mark, and the world is becoming a gloomy place once again. In America, the pandemic has infected more than 7.2 million and killed more than 206,000. Meanwhile, Europe’s worst COVID-19 center, Madrid, is considering fresh lockdown restrictions in the coming days, as well as Moscow’s mayor ordered companies to send at least 30% of their staff home, as many European countries reported records in new infections. This, in turn, exerted downside influence on the market risk tone and contributed to gold gains. On the other hand, the rumors concerning Trump administration employee Hope Hicks’ virus infection and the President’s fears also got infected on the market trading sentiment, which also favors the gold prices. 

The U.S. dollar extended its early-day gains and took further bids on the day due to the Thursday’s upbeat US ADP report, which showed that private-sector employers added 749K new jobs in September. Besides this, the gains in the U.S. dollar was further boosted by the risk-off market sentiment. The Bullish sentiment around the U.S. dollar was further bolstered by the final version of the US GDP print, which showed that the economy declined by 31.4% during the second quarter of 2020 against 31.7% estimated. Apart from this, Chicago PMI beat expectations by a significant margin and surged to 62.4 for September. Looking forward, the traders will keep their eyes on the ongoing drama surrounding the U.S. elections and updates about the U.S. stimulus package. Meanwhile, the U.S. employment data for September will be key to watch on the day.

Daily Support and Resistance

S1 1863.51

S2 1883.52

S3 1894.92

Pivot Point 1903.52

R1 1914.92

R2 1923.53

R3 1943.53

Gold displays excessive volatility as it plunged distinctly from 1,906 mark to 1,890 and then again turned to trade at 1,906. It appears like the traders are bolstering for the high impact of Non-Farm Employment change and from the U.S. economy. Economists are anticipating mixed data; therefore, gold can trade choppy until the data comes out. On the higher side, gold may find resistance at 1,920 upon the breakout of 1,911 level. In contrast, a bearish breakout of 1,900 level can trigger selling unto 1,892. Good luck! 

Categories
Forex Signals

Gold Price Forecast, Sept 23 – Bearish Bias Dominates Amid Stronger USD! 

Today in the European trading session, the yellow metal prices failed to stop its early-day losing streak and still gaining negative traction around the $1,885 level, having hit the low of $1,873 level on the day. However, the broad-based U.S. dollar strength could be considered one of the main reasons behind the bullion losses. Hence, the U.S. dollar was supported by a strong U.S. housing market against rising global COVID-19 cases. 

Apart from this, the bullish bias in the U.S. dollar was further bolstered by the U.S. stimulus package’s hopes. Across the pond, the on-going progress around the S&P 500 Futures, backed by the hopes of the COVID-19 vaccine and further U.S. stimulus, also weighed on the yellow metal price. Elsewhere, the reason behind the upbeat S&P 500 Futures could also be associated with U.S. positive data, which tends to fuel the hopes of the U.S. economic recovery. 

On the contrary, the geopolitical tensions between China and some notable countries like the U.S. and U.K. became the key factor that helped the yellow-metal prices limit its deeper losses. The coronavirus (COVID-19) crisis also keeps challenging the market upbeat trading sentiment, which might give some support to the yellow metal prices.

Despite the concerns about the 2nd-round of coronavirus infections, the market trading sentiment has been flashing green since the day started. Thus, the on-going positive tone around the equity market tends to undermine the safe-haven metal. However, the market sentiment was being supported by the strong U.S. housing market. 

Detail suggested that the existing home sales rose to 6 million in August, the highest level in nearly 14 years. Moreover, the market risk sentiment was further bolstered by the Fed Chair Jerome Powell’s measured comments. He said on Tuesday that it might be possible for the Fed to raise interest rates before inflation starts to average 2%. This, in turn, underpinned the safe-haven U.S. dollar and contributed to the currency pair. 

Moreover, the market trading sentiment was further bolstered by the reports suggesting that the U.S. House of Representatives has announced a bill to support government spending ahead of a shutdown, which also boosted the Us dollar and contributed to the gold prices losses.

As a result, the broad-based U.S. dollar managed to maintain its previous session gains and still flashed green on the day amid upbeat U.S. data and pullback in technology shares. However, the U.S. dollar gains seem rather unaffected by the upbeat market tone and held its gaining streak, at least for now. Thus, the U.S. dollar gains kept the gold prices under pressure as the price of gold is negatively related to the U.S. dollar price. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.18% to 94.162 by 9:38 PM ET (1:38 AM GMT). Furthermore, the second round of coronavirus infections keeps challenging the market risk tone, which might help the gold prices limit its deeper losses. As per the latest report, the U.S. has crossed 200,000 COVID-19 deaths tolls, and multiple European countries are imposing lockdown restrictions. Meanwhile, the U.K. set stricter measures on Tuesday, suggesting that the previous lockdown may need to be reimposed. 


Looking forward, the market traders will keep their eyes on the preliminary readings of September month PMIs from the U.K., Europe, and the U.S. for fresh direction. Meanwhile, the USD price dynamics and coronavirus headlines will be key to watch. Across the pond, the Fed Chair Jerome Powell’s second day of the congressional testimony will also b key to watch.

Daily Support and Resistance

S1 1858.21

S2 1881.21

S3 1890.7

Pivot Point 1904.2

R1 1913.7

R2 1927.2

R3 1950.19

Gold price extends to trade distinctly bearish at 1,890 level, disrupting the triple bottom support level of 1,903. On the lower side, gold may sink further until the next support level of 1,877 and 1,862. At the same time, resistance holds around 1,903 and 1,919 level. The bearish bias remains dominant today. Good luck! 

Categories
Forex Signals

Gold Price Forecast, Sept 22 – Choppy Session in Play! 

The safe-haven-metal prices failed to stop its previous session losing streak and catch further offers near below $1,900 level, mainly due to the broad-based U.S. dollar strength triggered by the risk-off market sentiment. Thus, the broad-based U.S. dollar strength from the multi-month low could be recognized as one of the main causes behind the yellow-metal latest weakness as the market’s risk-off wave tend to prefer the U.S. dollar above all, which in turn has an inverse correlation with the safe-haven yellow metal. The losses in the safe-haven U.S. dollar could be short-lived or temporary as the second wave of coronavirus continuously picks up the pace, which fuels worries over the U.S. economic recovery. 

On the contrary, the market risk-off sentiment, triggered by the reappearance of coronavirus cases, becomes key factors that kept a check on any additional losses in the gold. Apart from this, the on-going US-China tussle over the South China Sea might also help the gold prices to limit its deeper losses. As of writing, the yellow metal prices are currently trading at 1,901.96 and consolidates in the range between the 1,894.90 – 1,919.90.

As we all know, the market risk tone has been sour since the day started, and the reason could be associated with the long-lasting US-China tussle and growing market worries about the ever-increasing number of coronavirus cases. Elsewhere, the risk-off market sentiment was further bolstered by the long-lasting tussle between the United States and China, which became further soured after U.S. Secretary of State Mike Pompeo took helps from France, Germany, and the U.K. to reject China’s claims of the South China Sea at the United Nations (U.N.). This eventually placed a downside pressure on the market trading sentiment and underpinned the safe-haven assets. 

Apart from the Sino-American tussle, the expectations that the much-awaited U.S. phase 4 fiscal package will also be delayed favored the risk-off market. The U.S. dollar succeeded in stopping its early-day losses and took the safe-haven bids on the day amid market risk-off sentiment. However, the U.S. dollar gains could be short-lived or temporary due to the worries that the economic growth in the U.S. could be stopped because of the reappearance of coronavirus cases. However, the U.S. dollar gains kept the gold prices under pressure as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies, edged higher 0.04% to 93.602 by 9:48 PM ET (1:48 AM GMT).

Looking forward, the market players will keep their eyes on the comments from the U.S. Federal Reserve Chairman Jerome Powell and other Fed policymakers. Meanwhile, the on-going drama surrounding the US-China relations and updates about the U.S. stimulus package will not lose its importance. Given the holiday in Japan, due to the Autumnal Equinox Day, coupled with an absence of major data/events, the USD moves and coronavirus headline will be key to watch.


Daily Support and Resistance

S1 1920.66

S2 1941.35

S3 1950.45

Pivot Point 1962.04

R1 1971.14

R2 1982.73

R3 2003.42

Gold prices dropped distinctly from 1,935 mark to 1,888 level in the wake of the hawkish Fed Chair Jerome Powell’s speech. The precious metal is currently jumping off to achieve 38.2% Fibonacci retracement at 1,914, and beyond this, the following resistance lingers at 1,921 and 1,930. Let’s keep a focus on 1,907 today as gold can trade bullish beyond this and bearish beneath the same level today. Good luck! 

Categories
Forex Signals

Gold Choppy Session Continues – Quick Buy Limit!  

The yellow metal prices failed to maintain its previous-day gaining streak and edged lower to 1,940 level due to the broad-based U.S. dollar strength, backed by the better-than-expected U.S. unemployment figures. Apart from this, the central bank said that it expects the U.S. economic recovery from the coronavirus crisis to gather pace, boosting the U.S. dollar sentiment.

However, the U.S. dollar upticks pushed the bullion prices down in Asian morning trade, although the U.S. Federal Reserve also stated yesterday that it was keeping interest rates close to zero until inflation increases to over 2%. On the contrary, the previous market optimism over the coronavirus (COVID-19) vaccine/treatment was recently overshadowed by the latest mixed signals regarding the coronavirus (COVID-19) vaccine and U.S. aid package. This, in turn, the market trading sentiment turned sour, which might help the gold prices to limit its deeper losses. 

It is worth recalling that the Federal Open Market Committee (FOMC) upwardly revised short-term economic forecasts. Meanwhile, he also repeated their promise to do everything necessary. The U.S. central bank also holds the Average Inflation Targeting (AIT) program while displaying a readiness to keep the easy monetary policy even if the inflation shoots above the 2.0% target. 

At the USD front, the broad-based U.S. dollar extended its early bullish trend on the day amid mixed sentiment in the market. Moreover, the foresees unemployment falling faster than the central bank expected in June, also helped the greenback to put the fresh bids. Let me remind, the Us dollar saw losses in the wake of the Fed’s comments and disappointing U.S. retail sales data but gradually erased the losses after the Fed hinted economic growth to improve from the COVID-19. However, the modest surge in the greenback kept the gold prices under pressure as gold price is inversely related to the U.S. dollar price. Whereas, the U.S. Dollar Index Futures that tracks the greenback against a bucket of other currencies was up 0.45% to 93.543 by 12:24 AM ET (5:24 AM GMT).

However, the equity market has started to flash red since the Asian session started. Hence, the reason for the risk-off market sentiment could be the deadlock over the U.S. Congress proceeding over the much-awaited aid package. Although the U.S. President Donald Trump recently indicated the solution to arrive soon, House Speaker Nancy Pelosi’s rejection of holding the votes on a package around $1.5 trillion shows that the Democrats are in no mood to relinquish controls. This, in turn, undermined the market trading sentiment and helped the gold prices to limit its deeper losses.

The market trading sentiment was further bolstered by the fresh U.S. President Donald Trump’s warnings to the World Trade Organization for its favor to China. This, in turn, might recall the trade war concerns that have been silent off-late. Across the pond, the COVID-19 outbreak continues to rise, which keep dampening the global economic outlook.

On the contrary, the market trading sentiment was rather unaffected by the renewed optimism over the coronavirus (COVID-19) vaccine/treatment. Nevertheless, U.S. President Donald Trump said that late-October would distribute the COVID-19 vaccine, and policymakers in the U.K., China, and Russia also join the upbeat tone about finding the cure of the pandemic. This could help the market trading sentiment to limit its losses.


Looking ahead, the market players will keep their eyes on the busy economic calendar for near-term moves—the U.S. Initial Jobless Claims and the U.S. housing data will be key to watch. Meanwhile, the updates surrounding the fresh Sino-US tussle and the coronavirus (COVID-19) updates could not lose their importance.

Gold prices slipped dramatically from 1,959 level to the 1,940 mark operating above the 1,936 support range. The triple bottom pattern on the hourly chart is expected to support gold prices now at 1,936. Beyond this, bullish sentiment can pull gold price higher until the 1,949 level, and over this, the 1,958 level may serve as resistance. Breakout of 1,936 mark can prolong selling bias unto 1,924 area today. Good luck! 

Categories
Forex Signals

Gold Trades Choppy Ahead of FOMC – Ascending Triangle in Play! 

During Wednesday’s Asian trading session, the yellow metal prices extended its overnight buying bias and gathered some pace around the two-week tops above 1,960. The massive offered tone surrounding the greenback was seen as one of the major factors that helped the dollar-denominated commodity gold. However, the weaker tone around the U.S. dollar was mainly driven by the ongoing risk-on mood, which eventually undermined the safe-haven U.S. dollar. Besides, the U.S. dollar bearish bias could also be associated with traders’ cautious mood ahead of the Federal Open Market Committee (FOMC) meeting. Apart from this, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials.

Meanwhile, the risk-on sentiment was further bolstered by the University Of Pittsburgh School Of Medicine’s positive news, where experts produced the strongest antibody component for the coronavirus tested over animals. These positive headlines became the key factor that kept the lid on any further yellow metal gains. On the contrary, the Sino-US trade area and coronavirus woes flashed mixed signals, which keep challenging the market risk-on sentiment. Gold prices are currently trading at 1,966 and consolidating in the range between 1,949.99 – 1,962.97. Moving on, the market traders seem reluctant to place any strong position ahead of the U.S. Federal Reserve’s policy meeting, which is due to happen on the day. 

Despite the COVID-19’s ongoing global spread and the Sino-American tussle, not to forget the fears of no-deal Brexit, the market trading sentiment extended its early-day positive tone and remained supportive by the positive data from the U.S. and China, which suggesting gradual recoveries in the global economics from China and the U.S. At the data front, China’s Industrial Production and Retail Sales surpassed forecasts for August, the U.S. NY Empire State Manufacturing Index also recovered to 17.00 and pleased the optimists. 

Apart from this, the reasons for the risk-on market trading sentiment could also be attributed to the positive headlines concerning the coronavirus vaccine. The AstraZeneca showed readiness for resuming its vaccine trials after a brief “routine” pause, while the Pfizer is confident about getting the cure of the pandemic by the year’s end. Furthermore, the latest news came from the University Of Pittsburgh School Of Medicine, wherein the scientists produced the strongest antibody component for the pandemic. This, in turn, underpinned the market trading sentiment and kept the lid on any further gains in the gold prices.

Across the pond, the tussle between the US-China flashed mixed signals as the Trump administration quietly eased warning towards China and Hong Kong. Whereas, the Dragon Nation extended tariff relief for U.S. imports. This, in turn, the U.S. rolled back the decision to ban some of the productions from Xinjiang. Despite this, the relationship between US-China turned sour after the World Trade Organization (WTO) ruled against the Trump administration’s decision to levy multiple trade sanctions on China. These mixed headlines might exert downside pressure on the market trading sentiment, which could help further the safe-haven assets.

The broad-based U.S. dollar failed to keep its overnight gains and edged lower 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 U.S. Federal Reserve’s policy meeting, which is scheduled to take place on the day. It is worth mentioning that the Fed will speak later to hand down its policy decision; as we know, this will be its first meeting since Fed Chairman Jerome Powell announced a more relaxed approach to inflation at the Jackson Hole symposium August 27. However, this stance is broadly expected to be continued and could undermine the U.S. dollar by introducing further stimulus measures. At the coronavirus front, the ongoing rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable future.


Looking ahead, the market traders will keep their eyes on Japan’s trade numbers and Aussie housing data. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting, scheduled to take place on the day. Meanwhile, New Zealand’s Current Account and the Pre-Election Economic and Fiscal Update (PREFU) will also key to watch. All in all, the updates surrounding the Brexit, virus, and US-China tussle will not lose their importance. 

The yellow metal gold traded sharply bullish amid weaker U.S. dollar to trade at 1,961 level. On the higher side, the gold prices may continue to trade bullish until 1,970 and 1,985 and 1,994 resistance levels. On the lower side, the gold may gain support at 1,963 and 1,955 levels. Overall, the trading bias seems bullish. Good luck! 

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Forex Signals

Gold Extend Previous Day Bullish Rally – Risk-On Market Sentiment!

During Tuesday’s Asian trading session, the yellow metal prices extended its previous day winning streak and edged higher on the 2nd-day of a new week. However, the bullish sentiment around the yellow-metal prices has remained supportive by the prevalent selling bias surrounding the U.S. dollar. The losses in the U.S. dollar was seen as one of the key factors that helped the dollar-denominated commodity. Hence, the U.S. dollar was being pressurized by the doubts over the U.S. fiscal stimulus measures. Besides, the upbeat market mood, backed by the combination of factors, also undermined the U.S. dollar and contributed to the bullion gains. It is worth mentioning that the market trading sentiment was supported by the news suggesting that the Phase III clinical trial went very well, and the vaccine could be ready by November/December.

Meanwhile, the market risk sentiment got a lift after the upbeat Chinese activity data, which pushed the S&P 500 futures back on the bids to test 3380 levels. As in result, the upbeat market tone becomes the key factor that kept the lid on any additional gains in the safe-haven metal. Across the pond, the market trading sentiment was relatively unaffected by the Sino-American tussle, which recently picked up pace after the Trump administration banned certain Chinese products. At this time, the yellow metal prices are currently trading at 1,967.49 and consolidating in the range between 1,955.22 – 1,967.61.

While discussing the positive side of the story, the renewed optimism over a possible vaccine for the highly infectious coronavirus disease boosted the market risk tone. The hopes of the vaccine further boosted after the Chinese CDC chief biosafety expert tweeted that the Ordinary Chinese could take the #COVID19 vaccine as early as November or December as the phase III clinical trial went very smoothly. Meanwhile, the Pfizer’s optimism to provide the pandemic’s cure during this year to the U.S. also boosted the hopes of the vaccine. This, in turn, weakened demand for safe-haven metal and might keep a lid on any extra gains for the yellow metal.

Moreover, the risk-on sentiment was further bolstered by the latest headlines suggesting that the Customs Tariff Commission of China is considering extending tariff exemption on some of the U.S. goods imports. In the meantime, China’s Finance Ministry stated that the tariff exemption extension applies to products from the U.S. such as lubricants. Apart from this, the upbeat Chinese macro numbers also exerted a positive impact on market trading sentiment. At the data front, China’s August Retail Sales YoY, the number came in at 0.5% versus. 0% exp and -1.1% last, with Industrial Output YoY at +5.6% and +5.1% exp and +4.8% last. In the meantime, the Fixed Asset Investment YoY unchanged at -0.3% vs -0.4% expected and -1.6% last. At the same time, China’s January-August Private Sector Fixed Asst Investment dropped by 2.8% YoY.

Additionally, the reason for the upbeat market tone could also be associated with the positive news suggesting that the Trump administration quietly eased travel warnings towards China and Hong Kong. However, this news recently pleased the market risk tone, which tends to urge investors to invest their money into riskier assets.

Across the ocean, the fears of no-deal Brexit and the Sino-American tussle keep challenging the positive market tone, which might help the yellow-metal prices. At the US-China front, the tensions between Sino-US picked up further pace after the U.S. blocks Chinese goods made with forced labor. As per the latest report, the Trump administration has banned the import of certain apparel and computer parts from China, while saying forced Muslim laborers make them from the Xinjiang region.

At the Brexit front, the recent victory of the U.K.’s ruling Conservative Party-backed Internal Market Bill (IMB) into the House of Commons also keeps questioning the risk-on market sentiment. Although, the bill defied the opposition Labour Party’s motion for blockage but is yet to be announced as a law.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable prospect. The World Health Organization (WHO) recorded a record single-day hike in COVID-19 cases by 307,930 in 24 hours during this weekend.


Looking ahead, the market traders will keep their eyes on updates surrounding the Brexit, virus, and US-CHina tussle. Meanwhile, the U.S. Industrial Production m/m and Import Prices m/m will also be key to watch. The yellow metal gold traded distinctly bullish amid softer U.S. dollar to trade at 1,968 mark. On the upper side, the gold may extend trading upward unto 1,985 resistance. On the selling side, the XAU/USD may gain support at 1,963 and 1,955 mark. Overall, the trading bias appears to be bullish.

Entry Price – Buy 1968.14
Stop Loss – 1962.14
Take Profit – 1975.64
Risk to Reward – 1:1.25
Profit & Loss Per Standard Lot = -$600/ +$750
Profit & Loss Per Micro Lot = -$60/ +$75
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

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Forex Signals

Gold’s Choppy Session in Play – Brace for Selling Signal! 

During Monday’s early Asian trading session, the yellow metal prices extended its halt its overnight bearish bias and gathered some pace around above the 1,950 level. The U.S. tech stocks continue to fall, led once again by NASDAQ, which tends to help the gold prices to stay bid. However, the weaker bias around the U.S. dollar was mostly driven by the lack of safe-haven demand. Hence, the market trading sentiment was being supported by the news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials, after stopping it during the last week. In the meantime, the risk-on sentiment was further bolstered by the comments from the European Central Bank (ECB) policymakers suggesting further easy money days. These positive headlines became the key factor that kept the lid on any further yellow metal gains. The market players did not give any major heed to the Sino-US on-going tussle and Brexit looming worries across the pond. 

The yellow metal price is trading at 1,946.49 and consolidating in the range between 1,937.40 – 1,951.72. The market traders seem cautious to place any strong position ahead of the U.S. Federal Reserve’s policy meeting, which is scheduled to take place on Wednesday. Despite the fears of no-deal Brexit and the Sino-American tussle, not to forget the record single-day increase in COVID-19 cases, the market trading sentiment extended its early-day positive tone and remained supportive by the weekend positive headlines suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials. The S&P 500 Futures add 0.73% to 3,347 as of now. Considering the risk-barometers’ positive tone, the market’s safe-haven demand undermined, eventually weighing on safe-haven metal prices.

The reasons for the risk-on market trading sentiment could be attributed to the positive headlines concerning the coronavirus vaccine. The AstraZeneca showed readiness for resuming its vaccine trials after a brief “routine” pause, while the Pfizer is confident about getting the cure of the pandemic by the year’s end. Furthermore, the U.S. Consumer Price Index (CPI) data flashed another positive signal, after the Producer Price Index (PPI), for the Federal Reserve policymakers to meet this week. This exerted an extra positive impact on the market trading sentiment. Moreover, the market trading sentiment was further bolstered by the latest positive report that Libya’s oil industry will reopen after almost 8-months of a stop to exports.  

The fears of no-deal Brexit and the Sino-American tussle keep challenging the positive market tone across the ocean, which might help the yellow-metal prices. At the US-China front, the tensions between Sino-US remain on the card amid China’s retaliation to the U.S. sanctions on diplomats. Meanwhile, the looming decision on TikTok also keeps the world’s two largest economies at the slippery track.

At the coronavirus front, the on-going rise in COVID-19 cases globally continues to fuel worries concerning the global economic outlook for the foreseeable future. The World Health Organization (WHO) recorded a record single-day hike in COVID-19 cases by 307,930 in 24 hours. Apart from this, Politico’s news that Iran’s preparing to take revenge for their soldier Qassem Soleimani adds pressure to the market trading sentiment. Furthermore, New Zealand’s extension of lockdown restrictions until September 21 with stricter conditions in Auckland also ap further gains in the equity market. This, in turn, might helps the safe-heaven gold prices.

On the flip side, the news that Tropical Storm Sally is expected to become a hurricane on Monday may affect a region stretching from Morgan City, Louisiana, to Ocean Springs, Mississippi. Thus, these gloomy headlines might support the gold prices by undermining the market trading sentiment. Looking ahead, the market traders will keep their eyes on updates surrounding the Brexit, virus, and US-CHina tussle. Whereas, investors are also looking to the U.S. Federal Reserve’s policy meeting scheduled to take place on Wednesday.


Gold is trading at 1947 mark, meeting the next resistance at 1,950. On the 4 hour chart, XAU/USD has set a double top pattern that’s expected to drive gold prices lower unto 1,942 mark. Overall trading in gold is sideways in between 1,950 to 1,942 mark though, the destruction of this area may drive additional moves. On the higher side, resistance lingers at 1,958 and 1,966 while support lingers at 1,937 level. 

Entry Price – Sell 1947.44 

Stop Loss – 1953.44

Take Profit – 1939.94

Risk to Reward – 1:1.25

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

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

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

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Forex Signals

Gold Failed to Maintain Overnight Bullish Run-Up – Quick Update!

The yellow metal prices failed to extend its bullish overnight rally and instantly dropped below the $1,940 level after hitting 9-day high overnight. However, the overnight gains could be attributed to the report suggesting the second week of U.S. stock selloff and fall in the U.S. dollar. Still, the gains in the precious metals were short-lived as the market trading sentiment turned positive.

Thus, the market trading sentiment was supported by optimism over a possible vaccine and treatment for the highly infectious coronavirus, as well as Tokyo’s optimism over easing lockdown restriction also favor the market trading sentiment, which ultimately undermined the safe-haven metal.

On the contrary, the coronavirus (COVID-19) woes and the US-China tussle keep challenging the market risk-on mood, which capped further downside momentum for the bullion. Elsewhere, the broad-based U.S. dollar weakness could help the bullion prices to limit its deeper losses. The yellow metal is trading at 1,941.80 and consolidating in the range between 1,937.41 – 1,949.35.

It is worth recalling that the market trading sentiment is rather unaffected by the on-going uncertainties over the much-awaited fiscal package, fueling worries over the U.S. economic recovery. Moreover, the market players are also ignoring President Donald Trump’s hard stand against TikTok and the recent cancellation of over 1,000 visas from Beijing. Besides, the fears of a no-Brexit deal also failed to hurt the market trading sentiment. As in result, the futures tied to the S&P 500 are adding 0.57%.

However, the market trading tone was being supported by optimism over a possible vaccine and treatment for the coronavirus. After the Goldman Sachs, these hopes fueled that Pfizer’s candidate said that Pfizer’s candidate vaccine could be approved as early as October. In the meantime, the news of receding tensions between India and China and the positive news over the receding coronavirus (COVID-19) led activity restrictions in Tokyo also boosted the market trading sentiment. This in, turn, undermined the safe-haven metal.

Moreover, the latest record recovery in the BSI Large Manufacturing Conditions Index for the third quarter (Q3), from -44.2 expected and -52.3 before +0.1, citing that the Japanese economy is set for a strong recovery, also favor the market risk tone and kept the yellow-metal prices under pressure.

As in result, the broad-based U.S. dollar failed to gain any positive traction and took the offer on the day as doubts persist over the global economic recovery from the U.S. stock selloff witnessed that selloff. As well as the risk-on market sentiment also weighed on the American currency. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.10% to 93.295 by 9:40 PM ET (2:40 AM GMT).

At the coronavirus front, the global COVID-19 cases continue to increase, which fade hopes of a faster economic recovery. As per the latest statement, there are around 28 million COVID-19 cases globally as of September 11, according to Johns Hopkins University data. These fears might urge traders to invest in the safe-haven asset like gold.

Looking ahead, the market traders will keep their eyes on the U.S. Consumer Price Index (CPI) for August, which is expected 1.2% against 1.0% YoY. Moreover, the updates surrounding the Sino-US tussle and Brexit-related headline could not lose their importance.


The precious metal gold has disrupted the triple bottom support level of 1,942 level and it continues to trade below this level. Gold may find an immediate support at 1,937 level and bearish breakout of this level can extend selling bias until 1,921. Conversely, the bullish crossover of 1,942 level may drive buying trend until 1,950 level and above this, the immediate target is expected to be 1,965 level. Let’s brace for the U.S. Inflation data to encourage further trend in gold. Good luck!

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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

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

Gold’s Choppy Session Continues – Trader’s Brace for a Breakout 

The yellow metal prices failed to stop its previous day losing streak and dropped to 1,923.20 level mainly due to the broad-based U.S. dollar strength, backed by the upbeat prints of the NFIB Small Business Index and anti-risk moves. However, the broad-based U.S. dollar strength could be considered as one of the main reasons behind the yellow-metal latest weakness. 

Whereas, the bullish sentiment around the U.S. dollar was further improved after the U.S. markets saw a second rout in tech stocks in less than a week, which gave a boost to the U.S. dollar and dragged the yellow-metal down. On the other hand, the market earlier optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the latest reports that suggested the pause in AstraZeneca’s COVID-19 vaccine trials. This, in turn, undermined the market trading sentiment, which might help the gold prices to limit its deeper losses. 

It’s also worth reporting that the gold prices faced a steep drop and then recovery during the previous session. However, the rally was backed by major selloffs in stocks. The yellow-metal prices fall, bounce, and flatten could be attributed to the second U.S. big tech stocks record-breaking fall, which caused U.S. markets to fall. The overnight surge in gold prices along with lift in the dollar at the same time seems unusual, as one generally falls as the other gains. But the gains in the gold prices were short-lived as the U.S. dollar becomes the market favourite.

However, the equity market has been flashing red since the Asian session started. The reason could be associated with the major negative catalysts. Be it the further delay in the much-awaited coronavirus (COVID-19) relief package or the resurgence of COVID-19 new cases in the U.S., not to forget the long-lasting US-China and China-India tussle, all these factors are weighing on the market trading sentiment, which could be considered as the main factors that capped further downside momentum for the safe-haven assets. Apart from this, the fears of the U.K. and the European Union’s (E.U.) Brexit talks and a pause in the AstraZeneca’s COVID-19 vaccine trials also add pessimism around the market trading sentiment.

On the contrary, the stabilizing virus figures in Australia, China, and Japan helps the market trading sentiment to limit its deeper losses and might cap the further upside for the gold.

 

At the US-China front, the U.S. President Donald Trump pledged to “stand tough on China”, if he is re-elected. However, these statements could be witnessed by the Trump administration’s recent punitive measures over the Chinese diplomats. Whereas, the Dragon Nation did not feel reluctant to take revenge from the U.S. while announcing new U.S. visa restrictions.

At the USD front, the broad-based U.S. dollar extended its previous day bullish trend on the day amid downbeat sentiment in the market. Also supporting the U.S. dollar prices could be the major selloffs in U.S. stocks. The U.S. markets saw a second rout in tech stocks in less than a week, which underpinned the U.S. dollar. However, the gains in the U.S. dollar kept the gold prices under pressure as the price of gold is negatively related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index, which tracks the greenback against a basket of other currencies rose by 0.07% to 93.502 by 10:01 PM ET (3:01 AM GMT). 

Gold prices are supported amid a selloff in the U.S. stocks, especially Amazon, Apple, Microsoft and Facebook. Gold prices are now trading sideways around 1,927 level, with immediate support at 1,922 and resistance at 1,935 level. On the higher side, the XAU/USD may find next resistance at 1,942 level upon the breakout of 1,935 level. Conversely, a bearish breakout of 1,922 level may lead gold prices towards 1,917 and 1,910 level. Good luck! 

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Forex Signals

Gold Supported Over Symmetric Triangle Pattern – Quick Outlook! 

The yellow metal prices extended its Friday’s winning streak and took bids around the $1,936 level, mostly due to the risk-off market sentiment. That was witnessed by the negative performance of the S&P 500 Futures. However, the reason for the downbeat trading sentiment could be associated with the worrisome headlines concerning Brexit and on-going tension between the U.S. and China. This, in turn, helped the gold prices to put safe-haven bids. In the meantime, the coronavirus (COVID-19) worries also keeps the market trading sentiment cautious.

On the contrary, the broad-based U.S. dollar strength, backed by the jobs data, which showed a dip in the unemployment rate, and a surge in U.S. Treasury yields, becomes the key factor that capping further upside momentum for the bullion. The yellow metal prices are trading at 1,928.19 and consolidating in the range between 1,927.92 – 1,941.47. However, the bullion traders seem inactive to place any strong position amid Labor Day Holiday in America.

Be it the worrisome headlines concerning the Brexit or the tension between the US-China, not to forget the coronavirus issues, the market trading sentiment has been flashing red since the week started, which ultimately keeps the safe-haven assets supportive on the day. At the Brexit front, the UK PM Boris Johnson set the October 15 deadline to trade with the European Union (E.U.). The tension was further bolstered by the Financial Times’ headlines, suggesting that the U.K. is preparing fresh legislation that will override key parts of the Brexit withdrawal agreement. These gloomy headlines initially exerted downside pressure on the market and helped the safe-haven assets. 

At the US-China front, the Sino-China tensions further bolstered after the Trump administration’s blacklisting of Beijing backed SMIC. Hopefully, this happened after China warned to cut the U.S. debt buying and threatened U.S. chipmakers while announcing a 5-year plan to build the infrastructure to be self-dependant.

However, the reasons for the downbeat trading sentiment could also be attributed to the coronavirus (COVID-19) woes, which keep disturbing the global markets. The latest figures from Australia and Texas have been normalizing, but India and Brazil are still facing major pandemic issues. In Japan, 72,203 people have tested positive as of 7:30 PM, September 5, 2020.

At the USD front, the broad-based U.S. dollar extended its early-day gains and took further bids on the day due to Friday’s job data, which showed a decline in the unemployment rate and a rise in U.S. Treasury yields. On the flip side, the data showed that U.S. employment growth slowed, and permanent job losses increased. This, in turn, capping further again in the U.S. dollar. s. Although the gains in the U.S. dollar become the key factor that kept the check on any additional gains in the bullion as the price of gold is inversely related to the U.S. dollar price. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies edged up 0.18% to 92.882 by 12:05 AM ET (5:05 AM GMT).

Looking forward, the Labor Day Holiday in the U.S. will likely restrict the market moves. As well as, the updates on the virus and Sino-American tension could not lose its importance. In the meantime, the market players will be interested in the headlines concerning the Brexit.


At this movement, precious metal gold is trading sideways near 1,928, having immediate support at 1,930 and resistance at 1,940 levels. We can expect choppy trading today amid U.S. bank holidays in the wake of labor day. Neutral bias prevails in the market today. Let’s wait for gold to test the support level of 1,919. Violation of 1,919 may drive more selling until 1,903 and 1,880. Good luck!

Categories
Forex Signals

Gold Winning Signal Ends at Stop Loss – What’s Next? 

The precious metal gold prices were closed at 1953.90 after placing a high of 1954.86 and a low of 1902.53. Overall the movement of gold remained bullish throughout the day. After posting losses remaining flat from 3 consecutive days, gold prices rose on Wednesday by 2% on the back of US dollar weakness on the eve of a speech from the Federal Reserve Chairman Jerome Powell. Investors were betting on a further stimulus package to diminish the impact of coronavirus pandemic.

The US dollar was weak on the board as the traders were placing bids on the hopes and expectations that there was a further stimulus to come. The US Dollar Index (DXY) eased by about 0.1% against the six major currencies basket and made gold cheaper for investors holding other currencies. The Chairman of Federal Reserve, Jerome Powell, will speak at a virtual Jackson Hole symposium on Thursday, at the central bank’s annual Monetary Policy Framework Review.

The speech is highly awaited because investors believe that it will make a case for stronger monetary stimulus to help the economy. The speech will also give clues about Fed finding additional ways to bolster the economy if Congress fails to deliver on a new pandemic relief package.

Ahead of the September monetary policy meeting of Federal Reserve, the question remained on cards that whether Powell will favor shifting inflation target to an average instead of the long-favored 2% level. It is because such a shift will allow inflation to run higher before interest rates increased. In this situation, the US dollar will become weak, and gold will gain.

The Fed Chair’s speech’s rising dovish expectations on the next day weighed on the local currency and helped bullions to post gains. However, if Powell will deliver the expected comments, then gold could quickly recapture the $2000 level this week.

On the other hand, the gold prices were further supported by the rising safe-haven appeal after the US & China’s escalated tensions. On Wednesday, the US penalized 24 Chinese companies, and the Trump Administration cut them off from the American market, saying that they had contributed to China’s controversial island-building campaign.

The companies were added to the government list that bans them from buying American products. The reason was provided as their role in helping the Chinese military to construct artificial islands in the disputed South China Sea.

On the vaccine front, the top US virus expert Dr. Anthony Fauci warned against rushing out a COVID-19 vaccine before proven effective and safe. He said that it could hurt the development of other vaccines.

US President Donald Trump has been considering plans to put out a vaccine before it has been fully tested because a move like this would increase his chances of re-election in November’s presidential election. Democrats have accused Trump foe being prepared to endanger American lives for political gain.

The warning by Dr. Fauci faded some of the risk appetites from the market and added in the gains of gold prices on Wednesday.

Meanwhile, the gains in yellow metal were checked by the positive economic data from the US. At 17:30 GMT, the Core Durable Goods Orders rose in July to 2.4% from the expected 1.9% and supported the US dollar. The Durable Goods Orders in July also rose to 11.2% from the estimated 4.4% and supported the US dollar. The better than expected US economic data on Wednesday caped additional gains in yellow metal prices.


The precious metal gold soared sharply after testing the support level of 1,902 level to place a high around 1,955. The precious metal has closed a bearish engulfing candle on the 4-hour timeframe and may drive selling bias in gold. Gold can drop until 38.2% Fibonacci retracement level, which stays at 1,934 and 61.8% Fibo level of 1,922. Resistance stays at 1,954 and 1,965. The market is currently trading with massive volatility amid Fed Chair Pawell’s speech. Since our trade is closed at stop loss, let’s wait a bit for the market to gain stability before taking the next trade. Good luck! 

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Forex Signals

Gold On Fire – Two Winning Forex Trading Signals Closed! 

The yellow metal prices failed to maintain its early-day modest gains and dropped from the $1,932.48 to 1,924.20 level due to the broad-based U.S. dollar modest strength, backed by the downbeat market trading sentiment. However, the gains in the U.S. dollar could be short-lived as the doubts over the U.S. economy persists. On the other hand, the previous market optimism over the coronavirus (COVID-19) vaccine/treatment was overshadowed by the latest disappointing U.S. data. As in result, the market trading sentiment turned negative, which eventually might help the gold prices to limit its deeper losses. 

On the contrary, the on-going optimism related to the US-China trade deal talks remained supportive of the market trading tone that stopped the bullion’s gains. The global economic recovery from COVID-19 turned gloomy after the disappointing U.S. data. At the data front, the August’s Conference Board (C.B.) consumer confidence index dropped to 84.8, it was the lowest level since May 2014, with COVID-19-induced high unemployment contributing to the fall. The data was much weaker than the expected of 93 and was also weaker than July’s figures of 91.7. This data exerted some downside pressure on the market trading sentiment and provided some support to the safe-haven asset.

However, the equity market has started to flash red since the U.S. data released, but the equity market losses were very modest and temporary as the US-China trade optimism helped the market trading tone. The U.S. and Chinese leaders affirmed their commitment to their phase one trade deal on Monday that capped the yellow metal gains. But, both the US-China continued to disagree on other issues that might keep the market cautious. As we all know, the U.S. policymakers have not yet confirmed that when they will start negotiating the COVID-19 aid package. However, the hurdles over the box remain on the card amid multiple differences between both parties.

Also weighing on the safe-haven metal prices could be the reports that suggested the disappearing coronavirus (COVID-19) numbers from the U.S. and Australia. In turn, this decreased the safe-haven demand in the market and kept the gold prices under pressure. Moreover, the U.K. government’s funding for the University of Cambridge’s COVID-19 vaccine trials after the American rush for the pandemic’s cure also kept traders hopeful as treating the deadly virus likely to release soon.

Despite the downbeat U.S. data, the broad-based U.S. dollar extended its early bullish trend on the day amid mixed sentiment in the market. However, the modest gains in the U.S. dollar kept the gold prices under pressure as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index that tracks the greenback against a bucket of other currencies rose 0.05% to 93.062 by 10:15 PM ET (3:15 AM GMT).

Be it the trade/virus updates or the USD moves, not forget the U.S. Durable Goods Orders; these all catalysts will grab the major attention and impact the currency pair. As well as, the traders are keenly awaiting the global central bankers’ comments from the Jackson Hole Symposium, up for Thursday and Friday.


Earlier today, we managed to close two winning signals on gold, and fortunately, we came out of the market a bit early before gold started reversing over the double bottom area of 1,907. The precious metal gold is now trading at 1,937 level, exhibiting a solid bullish turn, and it may find an immediate resistance at 1,938 level. Closing of candles below 1,938 levels may help us secure a quick selling in gold. Elsewhere, the XAU/USD pair may continue to rise until the 1,956 level. Good luck! 

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Forex Signals

Consecutive Two Winnings On Gold Trading Signals – What’s Next?

The yellow metal prices succeeded in stopping its previous day declines and started to gain some bullish bias near above 1,935 level on the day. However, the gold prices have nothing major to cheer on the day except U.S. dollar weakness. The investor turned to the safe-haven metal as the dollar dropped, and COVID-19 worries increased. 

The upbeat market sentiment, backed by optimism over U.S. authorization of a blood plasma treatment for Covid-19, turned out to be a major factor that cap further upside in the gold. Elsewhere, the reason behind the upbeat market sentiment could also be associated with the overnight optimism over the US-China’ constructive’ talks on phase one trade agreement, which eventually dulled gold’s safe-haven appeal. 

On the contrary, the lack of progress over the next round of the U.S. fiscal stimulus measures and the coronavirus (COVID-19) prevalence grab major attention and keep challenging the risk-on market sentiment, which might provide some support to the gold. At the press, the yellow metal prices are currently trading at 1,933.55 and consolidating in the range between 1,926.68 and 1,937.62. Moving on, the traders seem cautious to place any strong position as all eyes are now on Thursday’s Jackson Hole symposium.

Apart from this, the market trading sentiment was further bolstered by fresh optimism over the US-China’ constructive’ talks on phase one trade agreement. The Dragon Nation recently confirmed that China and the U.S. had a constructive conversation on the trade agreement. As per the keywords, “China says both sides agreed to continue pushing forward implementation of phase 1 trade deal.” However, these updates are positive for risk sentiment and might weigh on the safe-haven assets like gold.

Across the pond, the lingering uncertainty over the next round of the U.S. fiscal stimulus measures also supported the risk aversion. As we know, the U.S. policymakers have not yet confirmed the restart of negotiation related to the COVID-19 aid package. However, the hurdles over the package were intensified further after the House Speaker Nancy Pelosi took a U-turn from her previous readiness to cut the demands in half. On the flip side, the on-going tussle between US-China and India’s phasing out of Huawei equipment to cite the Sino-American tension turned out to be the major factor that helped the gold prices to maintain its bullish bias on the day.

As a result of risk-on market sentiment, the broad-based U.S. dollar failed to gain any bids and took the offers on the day as doubts persist over the global economic recovery from COVID-19 ahead of Fed Chairman Jerome Powell speech at Thursday’s Jackson Hole symposium themed. As well as, the risk-on market sentiment also weighed on the American currency. However, the U.S. dollar losses helped the gold prices to deeper its losses as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. dollar index that tracks the greenback against a basket of other currencies edged down 0.11% to 93.207 by 9:48 PM ET (2:48 AM GMT).

Moving ahead, the market traders will keep their eyes on the U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium, which is scheduled to open on Thursday. The U.S. August consumer confidence, which is due later in the day and will be key to watch. In the meantime, the USD moves and coronavirus headlines will also closely followed as they could play a key role in the gold run-up.


Technically, the precious metal gold has violated the symmetric triangle pattern at 1,928 level, and below this, we tried to capture quick sellings twice and were able to capture quick green pips in both of the trades.

We have finally closed two winning signals in gold, but we had to come out of the market a bit early as the precious metal isn’t continuing with the selling trend. Anyway, we will still be looking to enter a selling trade below 1,928 level to target 1,911 and even further lower. Good luck! 

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Forex Signals

Gold Signal Hit 75 Green Pips – Brace for Second Trade!


Entry Price – Sell 1922.66
Stop Loss – 1928.66
Take Profit – 1915.16
Risk to Reward – 1:11.71
Profit & Loss Per Standard Lot = -$600/ +$750
Profit & Loss Per Micro Lot = -$60/ +$75

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

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Forex Signals

Gold Bearish Breakout – Brace for Selling!


Entry Price – Sell 1927.36
Stop Loss – 1925.68
Take Profit – 1907.68
Risk to Reward – 1:11.71
Profit & Loss Per Standard Lot = +$200/ +$2000
Profit & Loss Per Micro Lot = +$20/ +$200

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

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Forex Signals

Gold Facing Over $2,000 Level – Is it Going After $2,038?

In the early European trading session, the yellow metal prices stopped its previous day losing streak and recovered from the $1950-52 region to above $2000 level on the day. However, the bullish sentiment around the bullion was being supported by the broad-based U.S. dollar weakness. As well as, the multiple risk catalysts like US-China ongoing tussle, also triggered the precious metal’s rise on the day. In the meantime, the positive news over a potential COVID-19 vaccine becomes the key factor that capping the further upside for the gold.

At the moment, gold is trading at 2,005.25 and consolidating in the range between 1,980.88 – 2,010.09. Moving on, the traders seem cautious to place any strong bids ahead of the minutes from the U.S. Federal Reserve’s latest policy meeting, which are scheduled to be released on Wednesday.

Be it the failure of the U.S. lawmakers to provide any latest announcement over the coronavirus (COVID-19) relief package or latest penalties on China from the U.S., not to forget the ongoing rise in coronavirus cases; the market traders prefer to invest their money into the safe-haven assets like gold. The US-China tussle turns sour further as Trump keeps increasing the difficulties for the companies of China. As a result of the delayed trade review meet, American diplomats announced punitive measures for Huawei in the latest attack on China.

Also weighed on the market risk sentiment was the failure of the Democrats and Republicans to offer any latest announcement on the coronavirus (COVID-19) relief package amid political differences. Apart from this, the coronavirus concerns also keep challenging the energy traders. The virus fears take the front seats as the global leaders struggle to find any medicine to the deadly virus. Whereas, the ongoing rise in the coronavirus cases in Europe fueling the worries about economic recovery. As per the latest report, the actual coronavirus cases increased to 225,404, with a total of 9,236 deaths so far.

Whereas, the cases increased by 1,390 in Germany on the day against the previous day +738. At the same time, the death losses rose by 4, according to the report of German disease and epidemic control center, Robert Koch Institute (RKI). On the positive side, U.S. markets witnessed a heavenly session during the previous session, as the Nasdaq hit a record high yesterday and the S&P500 coming close to reaching its record high. But Asian stocks were mixed on the day, and the dollar was down as well. However, these positive signs turned out to b a major factor that capped further upside for the gold.

Considering the failure of agreeing on the coronavirus (COVID-19) relief package, the broad-based U.S. dollar was down on the day. However, market investors have stuck over uncertainty over the delayed package. Moreover, the weaker U.S. dollar could also be associated with the ongoing doubt about the U.S. economic recovery amid intensifying coronavirus cases.


The precious metal gold continues to bullish at a 2,008 level. We have already captured one positive and one negative signal in gold. But overall the pic count remains green, which is good for us. For now, gold may find an immediate resistance at 2,009 level, and above this, gold can go after 2,038 level. The RSI and MACD support buying trends while the 50 EMA also suggests bullish bias in the market. Let’s consider taking buy trade over 2,008 resistance level breakout during the U.S. session. Stay tuned to our forex trading signal page; we may enter trade if setup confirms buying. Good luck!

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Forex Signals

Gold Signal Hits Stop Loss – What’s Next to Expect? 

On Thursday, the precious metal gold firmed above $1,900 as the dollar declined, with bargain hunters posting on a resumption of bullion’s broader upwards trend brought by its recent steep slide from a record peak. On the positive side, U.S. President Donald Trump showed too much optimism about the U.S. economy during the White House press conference on early Thursday morning in Asia. As per Trump’s keywords, “U.S. economic performance significantly better than Europe.” 

He also said, ” We’re doing amazingly well with the coronavirus (COVID-19) and therapeutics.” However, these positive statements helped the equity market limit its deeper losses and capped the further upside for the yellow metal prices. On the positive side is the Republican leader’s willingness to cut payroll taxes after the November month elections. 

Meanwhile, the upbeat market performance could also be associated with the reports that President and CEO of the Federal Reserve Bank of Dallas Robert Steven Kaplan keep pushing the government for further unemployment benefits while refraining from imposing any lockdowns retractions. At the coronavirus front, the COVID-19 cases remain on the card and continue to affect the U.S. economic recovery. As per the latest report, the figures have crossed almost 5.2 million cases in the U.S. alone as of August 13, as per the Johns Hopkins University and millions unemployed.

Considering the failure of agreeing on the coronavirus (COVID-19) relief package, the broad-based U.S. dollar was down on Thursday morning in Asia. Although market investors have stuck between optimism and uncertainty over the delayed package, some claimed that U.S. economic recovery depended on both sides reaching an agreement. Moreover, the weaker U.S. dollar could also be associated with the on-going doubt about the U.S. economic recovery amid intensifying coronavirus cases. Whereas, the losses in the U.S. dollar become the key factor that kept the gold prices supportive as the price of gold is inversely related to the U.S. dollar price. 


Speaking about the signal, it was doing pretty well as we tried to trade the choppy session within 1,953 – 1,910 level. Unfortunately, the market reversed right before hitting our take profit. Our stop loss was too tight, considering the current level of volatility in the market. For now, the precious metal is trading at 1,930, and the upper and lower boundary of 1,953 to 1,910 level is providing resistance and support, respectively. You can either take a sell trade below 1,953 level or buy trade over 1,910 support. Good luck! 

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Forex Signals

Gold Signal Offers Another +150 Pips Profit – What’s Next?

Earlier today, we managed to close another exciting trade in gold, capturing 153.6 green pips. The precious metal gold bounced back over $1,900 per ounce as soft U.K. data revived concerns across a the coronavirus-driven economic slowdown and backed bullion erase primary losses fired by a resurgent dollar.

Emphasizing the economic loss produced by the pandemic, data revealed Britain’s economy contracted by a record of 20.4% between April and June, the most significant reduction announced by any major economy so far.

Despite the reducing number of virus cases in the U.S., the doubts remain about the U.S. economic recovery. As per the latest report, the COVID-19 crossed over 20 million cases reported as of August 11 as per the Johns Hopkins University data. But Texas, New York, and California reported declining numbers of hospitalizations.

Apart from the virus woes, the long-lasting tussle between the world’s two largest economies remained on the cards as bt nation fired shoots each other. It is worth restating that the Dragon Nation took revenge from the U.S. by imposing the sanctions on 11 American yesterday. The move comes after the U.S. sanctioned 11 Chinese officials and their allies in Hong Kong, including Hong Kong’s Chief Executive Carrie Lam. This statement capped the further upside in the equity market and helped gold prices to gain a bit of support.

Despite the intensifying conflict between US-China, the PBOC Governor expressed an upbeat tone while saying, “China will continue implementing the phase-one economic and trade agreement with the United States. This statement gave some breath to the investors.


On the technical side, the precious metal gold has tested the upward trendline support level of 1,877 level. Closing above this trendline is also suggesting buying trends in the gold. We took a buy trade at 1893.06 with a stop loss at 1894.42 and took profit at 1908.42. For now, the gold is holding at 1,932 level, and gold is facing resistance at 1,940. Above this, the next resistance stays at 1,955 level. Let’s wait for the market to extend another goos setup, and we will share the next trading signal. Stay tuned.!

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Forex Signals

Gold Triple Bottom Breakout Confirmed – Second Signal In Play!

The yellow metal prices extended its previous day losing streak and took offer near $2,014 level due to the risk-on market sentiment, supported by the expectations of a next U.S. stimulus, which boosted the market trading sentiment and undermined the safe-haven demand in the market.

On the other hand, the ongoing struggle between the United States and China continues to simmer, which became the key factor that helped the safe-haven gold limit its deeper losses. The broad-based U.S. dollar weakness, in the wake of upbeat trading sentiment, also capped losses for the yellow metal. While the ever-rising number of COVID-19 cases also urge investors to take shelter into safe-haven assets. The yellow metal prices are currently trading at 2,015.01 and consolidating in the range between 2,013.17 and 2,030.05. Despite many factors portraying the rush to risk-safety, the market players just giving attention to the optimism that the U.S. Congress reached closer to an agreement over the latest COVID-19 stimulus measures that caused a rebound in U.S. bond yields.

Despite the ongoing tussle and tit-for-tat responses between the US-China, the trade deal remains intact, as investors are awaiting a meeting between top U.S. and Chinese trade officials on Saturday to examine the first 6-months of the Phase 1 trade deal. On the contrary, the Dragon Nation imposed sanctions on 11 U.S. policymakers that include two Senators yesterday, in return to the U.S.’ move last week sanctioning 11 Chinese officials and their allies in Hong Kong. However, these gloomy headlines helped safe-haven metal to limit its further downside momentum.

Also challenging the risk-on market sentiment was the COVID-19 crisis. As per the latest report, the COVID-19 crossed over 20 million cases reported as of August 11, as per the Johns Hopkins University data. But Texas, New York, and California reported declining numbers of hospitalizations.

Elsewhere, U.S. President Donald Trump tweeted that top congressional Democrats wanted to meet with him over COVID-19 related economic relief. While the U.S. Congress is set to restart discussions on the COVID-19 deal. This, in turn, boosted the market risk sentiment and kept the yellow-metal under pressure. However, the investors now will be awaiting whether the Republicans and the Democrats reach a consensus on the latest stimulus measures.

Moreover, the market risk-on sentiment was further bolstered by U.S. President Trump’s optimism towards the American economy. He said he sees no reason why can’t the economy improve 20% in the 3rd-quarter (Q3). This positive headlines also gave support to the market trading sentiment and contributed to the metal losses.

The market traders still cheering the U.S. President Donald Trump’s action of signing four executive orders to release unemployment claim benefits, help with student loans, and aid for those living in a rented house, which also exerted a positive impact on the market trading sentiment and contributed to the gold losses.

Whereas, signs of economic recovery in China also supported the risk-on market sentiment. China’s consumer price index (CPI) increased 2.7% while its producer price index (PPI) dropped 2.4% in July from a year earlier, as per the National Bureau of Statistics report.

Despite the U.S. Congress reached closer to an agreement over the latest COVID-19 stimulus measures, and U.S. bond yields rebounded, the broad-based U.S. dollar failed to stop its losses and took the further offer on the day as the risk-on market sentiment weighed on the safe-haven U.S. dollar. However, the declines in the U.S. dollar helped the gold prices to limit its deeper losses as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped 0.06% to 93.537 by 10:01 PM ET (3:01 AM GMT).

Due to the lack of major data/events on the day, the market traders will keep their eyes on the USD price dynamics and coronavirus stories, which will play a key role in driving gold prices. As well as, the traders will keep their eyes on the news concerning U.S./China.

The precious metal gold’s bearish bias continues to drive it’s priced lower towards 1,972 level. Fortunately, we have already secured around 200 pips in gold and now, we are looking for another good point to take a buy trade in gold. For now, the precious metal may find support at 1,960 levels and resistance at 1,985. Let’s wait for market to settle down to secure the next trade.


Entry Price – Sell 2006.28
Stop Loss – 2006.26 (Breakeven Stop Loss)
Take Profit 1998.78
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$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

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Forex Signals

Gold Breaks Below Triple Bottom Support – Quick Signal!

Entry Price – Sell 2014.48
Stop Loss – 2020.12
Take Profit – 2006.98
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$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

Gold Sideways Movement Continues – Stronger NFP Keeping Dollar Stronger!

Today in the early Asian trading session, the yellow metal prices extended its late-Friday pullback and moved below $2,030. Let me remind you, the gold prices fresh losses can be considered as an extension to Friday’s losses that were the highest in 2-months. The reason could be associated with fresh risk-on market sentiment, supported by Trump’s latest positive statement that refueled hopes of further stimulus. 

As in result, the risk sentiment got a lift while the Asian equities trimmed their losses and held up near-daily highs that urged buyers to invest in riskier assets instead of safe-have assets. The risk-on market sentiment got additional support from upbeat China’s CPI, PPI, for July data. Elsewhere, the broad-based U.S. dollar reported losses on the day despite Friday’s better-than-expected U.S. payrolls report, which helped the bullion prices to limit its deeper losses. Meanwhile, the coronavirus (COVID-19) crisis gradually supported the safe-haven assets and capped its losses. The yellow metal prices are currently trading at 2,029.23 and consolidating in the range between 2,019.85 and 2,036.24.

Earlier today, U.S. President Donald Trump came out with positive news that “Democrats have called and want to get together.” This statement recently boosted hopes of the further stimulus package expired during the last week after policymakers canceled negotiations. However, this move is seen as a major factor that turned risk sentiment positive. Apart from this, U.S. President Donald Trump fulfilled his promise to take executive action as the U.S. Congress failed to offer any outcome over its latest stimulus measures. As a result, U.S. President Trump’s signed four executive orders to release unemployment claim benefits, help with student loans, and aid for those living in a rented house, which also exerted a positive impact on the market trading sentiment and contributed to the gold losses. 

In the meantime, the risk-on market was further bolstered by upbeat China’s CPI, PPI for July data. At the data front, the China July CPI +2.7% YoY (Reuters poll +2.6%). China July PPI -2.4% YoY (Reuters poll -2.5%).

On the negative side, the gloomy updates concerning the US-China tension and the coronavirus (COVID-19) kept challenging the risk-on market sentiment and traders cautious. At the US-China front, the long-lasting tussle between the two biggest economies continued to worsen day by day as Trump banned U.S. firms from doing any business with TikTok, WeChat, or the applications’ Chinese owners in the wake of national security threat. 

The tension between both parties was further bolstered after the U.S. imposed sanctions on senior Hong Kong and Chinese officials, including Hong Kong’s Chief Executive Carrie Lam, during last week. In the meantime, the White House National Security Adviser Robert O’Brien blamed China while saying that the “Chinese hackers have been targeting U.S. election infrastructure ahead of the 2020 presidential election.”

Also challenging the risk-on market sentiment was the COVID-19 crisis. As per the latest report, the U.S. crossed the grim milestone of five million COVID-19 cases as of August 10, according to Johns Hopkins University.

Whereas Australia’s 2nd-most populous state, the pandemic epicenter, Victoria, reported the biggest single-day rise in deaths. As per the latest figures, Australia’s coronavirus death losses crossed 314 as Victoria announces a daily record of 19 deaths and 322 new cases in the past 24 hours. Friday’s better-than-expected U.S. payrolls report also supported the risk-on market sentiments report. At the data front, the Non-farm payrolls increased by 1.763 million in July, against the predicted 1.6 million increase. In the meantime, the unemployment rate also dropped to 10.2% in July, vs. June’s reading of 10.5%.

Despite this, the broad-based U.S. dollar failed to stop its losses. It took the further offer on the day as the United States still facing virus woes. It struggled to control a spike in coronavirus cases, which fueled fears that U.S. economic recovery from COVID-19 has diminished. As well as, the risk-on market sentiment also weighed on the American currency. However, the losses in the U.S. dollar helped the gold prices to stay higher as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped by 0.11% to 93.308 by 10:16 PM ET (3:16 AM GMT).

Due to mixed headlines, the S&P 500 Futures failed to offer any clear direction while stocks in Australia and New Zealand stayed moderately positive. Moreover, the U.S. 10-year Treasury yields avoid moving as Japanese traders enjoy holiday due to Mountain Day.


Daily Support and Resistance

Support Pivot Resistance
2019.8600 2027.4300 2035.9600
2011.3300 2043.5300
2003.7600 2052.0600

Gold is trading at 2034 level, and it has settled a Doji candle over the 2023 support zone. At the same time, resistance lingers at the 2036 level. Over this, gold prices can rise towards 2063 level, and bearish breakout of 2023 level can directly sell unto the 1998 level. We managed to close 29.6 green pips during the Asian session today, but the second signal later ended up in loss. Let’s wait for more signals later today. Good luck! 

Categories
Forex Signals

Oversold Gold Bracing for Bearish Correction – Let’s Capture Quick Sell!

Entry Price – Sell 2036.88
Stop Loss – 2042.88
Take Profit – 2029.88
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$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

Gold Breaking Below Support 1,969 – Quick Update on Trading Signal!

On Monday, the precious metal gold prices failed to manage its early-day sharp gains and slipped from a record high of around $1,988.02. Gold prices fell below $1,988 level to trade modestly at $1,968 level, possibly due to the broad-based U.S. dollar fresh bids in the wake of safe-haven demand. However, the gold prices took round near the record high level.

The gold early-day sharp gains could be associated with the risk-off market sentiment triggered by the geopolitical tension between the U.S. and China. As well as the lack of clarity surrounding the much-awaited U.S. fiscal package also favored the safe-haven gold. Elsewhere, the bullish bias in yellow-metal prices was further bolstered by the coronavirus (COVID-19) woes that have been greatly favoring the market’s rush to risk-safety. Moving on, the gains in the greenback could be short-lived or temporary as the coronavirus continuously increases in the U.S., which faded the hopes for quick U.S. economic recovery. At the moment, the safe-haven-metal prices are currently trading at 1,974.19 and consolidating in the range between 1,969.96 and 1,985.11.

Apart from this, the ever-increasing coronavirus (COVID-19) cases continued to weigh on the investor’s confidence about the economic recovery and kept the trading market depressed, witnessed by the fresh leg down U.S. stocks futures. The number of cases globally almost crossed 17 million, while 4.4 million confirmed cases and more than 150,000 deaths toll in the U.S. individually. Elsewhere, the Australian state of Victoria recorded 429 new coronavirus cases on the day, with 13 death recorded so far. It is worth reporting that there are currently 6,489 active coronavirus cases in Victoria. Among them, 416 are in hospital. Apart from Aussie, Tokyo reported 292 new coronavirus infections so far on the day. Considering the on-going rise of virus cases in Australia, the Victorian Premier Daniel Andrews said that he would announce further business restrictions, which would further fuel concerns over the recovery in oil demand.

Besides, the risk-off market sentiment was further bolstered by the U.S. policymakers’ inability to provide details of the fiscal plan. Although the relief measure expired on Friday, the U.S. Senate members failed to offer any information on the unemployment claims benefit. Meanwhile, the uncertainty over the much-awaited fiscal package remains on the cards, as the Democrats and Republicans are still against each other over the package’s size. The Democrats are willing to offer $3.5 trillion help, while Republicans are not supporting anything more than $1.0 trillion.


Considering the early bearish trend continuation signal in gold, we decided to take a sell trade around 1,969 level to target the 1,963 level today. On the lower side, the gold may support around $1,961 level, and violation of this level can extend the selling trend until $1,945. Check out the trade plan below…

Entry Price – Sell 1969.87
Stop Loss – 1975.87
Take Profit – 1963.87
Risk to Reward – 1:1
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$40/ +$40

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

Choppy Session in Gold Continues – Brace for a Breakout! 

The safe-haven-metal prices failed to stop its previous day losing streak and remained depressed around $1772 from the multi-year highs level, mainly due to the risk-on market sentiment that was backed by the release of positive data from the U.S. and China. On the other hand, the ever-increasing number of COVID-19 cases globally and simmering tensions between the U.S. and China turned out to be the key factors that kept a lid on any additional losses in the gold prices. However, the selling bias surrounding the U.S. dollar might turn out to be the only factor giving some support to the dollar-denominated commodity (gold) and limiting deeper losses. The yellow metal prices are currently trading at 1,773.74 and consolidated in the range between the 1,772.95 – 1,777.16.

At the U.S. data front, the report of NFP showed that the U.S. economy built 4.8 million jobs in June against market expectations of 3 million. Whereas, the previous month’s reading was also recovered higher to +2.699 million as against 2.509 million reported earlier. In the meantime, the unemployment rate dropped more than expected to 11.1% from 13.3% previously, which boosted the investor’s confidence as they believe that the worse of the coronavirus pandemic was behind us.

At the China data front, China reported a Caixin Services Purchasing Manager’s Index (PMI) of 58.4 for June on the day, which surpassed the previous month’s readings of 55. Let me remind you; this was the highest PMI reading in two months.

On the other hand, the optimism about the positive results from the potential COVID-19 vaccine has remained supportive of the market mood, which tends to weaken demand for traditional safe havens and exerted some pressure on the yellow metal.

Apart from this, the on-going concerns over a second economic lockdown in the U.S. due to the surging number of confirmed coronavirus cases assisted the yellow-metal to keep a lid on any additional losses.

As per the latest report, the United States reported record coronavirus cases for the 3rd-straight day on Thursday with 52,789 latest numbers. In the meantime, Florida reported 10,109 new cases, while Texas recorded 7,915 new cases during the previous day. The record hike in the virus cases urges the Trump administration to think about the second economic lockdown, which weighs on the economic sentiment. However, this intensifying pandemic situation turned out to be one of the key factors that kept a lid on any additional losses in the gold.

At the Hong Kong front, the on-going tussle between the United States and China over the Hong Kong security law got an additional boost as U.S. Secretary of State Mike Pompeo recently criticized China’s Communist Party’s (CCP) decision on the Hong Kong security law by tweeting during the early Friday morning in Asia. As per the tweet, “The CCP implemented its national security law on Hong Kong, in violation of the commitments it made to the Hong Kong people– and disregarding Hong Kongers’ human rights and fundamental freedoms. 

In the meantime, the Hong Kong activist Nathan Law said during the early Friday morning in Asia that the human rights activists showed concern against Chinese security law and urged global leaders to help get justice. Elsewhere, the latest report suggests that many Hong Kong business people and experts are seriously considering leaving Hong Kong due to China’s crackdown.

However, this matter could exert additional downside pressure on the market’s risk-tone sentiment recently weighed down by the coronavirus (COVID-19) concerns. Whereas, the reason behind previous day declines could also be associated with the reports that showed India’s imports dropped 86% YoY in June. At the data front, the world’s second-biggest consumer of the yellow-metal imported around 11 tonnes of gold in June, down from 77.73 tonnes a year ago. In the meantime, the June imports dropped to $608.76 million from $2.7 billion a year ago as per value terms.


Daily Support and Resistance

S1 1726.83

S2 1749

S3 1762.59

Pivot Point 1771.17

R1 1784.76

R2 1793.34

R3 1815.51

The precious metal gold technical side hasn’t improved a lot. Overall, the XAU/USD is trading in a broad trading area of 1,776 to 1,766 levels. The bullish trendline on the one hour chart is supporting the bullish sentiment in gold. On the lower side, support for gold commands around the 1,759 and 1,749 levels. On the other hand, a bullish breakout on the 1,776 level could lengthen the buying bias to the 1,789 mark. Looking at the technical indicators, the RSI, MACD, and 50 periods EMA are supporting the gold’s bullish bias today. Good luck and happy weekend! 

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Forex Signals

Gold on a Bullish Run Amid Safe Haven Appeal – Update on Signal! 

During Friday’s early Asian trading session, the safe-haven-metal prices still consolidate into the overnight confined range around the 1,725 level, mainly due to mixed trading sentiment in the market. However, the bullish trend in the yellow-metal remains as long as it trades above the $1700 level. The prices of gold dropped sharply yesterday from the high of 1738, mainly after the upbeat U.S. data and positive reports from China that they overcame the coronavirus outbreak. 

As of now, the reason for the modest gains in the gold prices could be attributed to the fears of the second wave of COVID-19 and geopolitics tensions. At the press time, the yellow metal is currently trading at 1,726.16 and consolidates in the range between the 1,721.59 – 1,727.41.

As we are all well aware that the weekly jobless claims report showed an improvement compared to the previous week’s figures. However, the minor declines were backed by the pace of re-openings across the U.S. Weekly first-time unemployment claims dropped by 58,000 to 1.508 million in the week ended June 13, which provided some support to the risk sentiment.

The fears over the coronavirus resurgence remain on the card as Beijing reported 25 new COVID-19 cases on Thursday, while the Xinfadi market now faced almost 200 cases so far, which overshadowed the optimism over the ‘under control’ situation, as said by the Chinese official on Thursday.  

Despite US-China having political differences, both sides recently showed a willingness to keep talking on the trade deal, which exerted some positive impact on the risk sentiment and becomes one of the major factors that holds a lid on any further gains in the gold prices.



The yellow metal gold is currently trading with a bullish bias, crossing above a substantial resistance area of 1,731. Above this, bullish bias can be seen until the next resistance level of 1,733 and 1,737. While the closing of candle or violation of 1,731 will extend buying until the next target level of 1,744. Consider this, we took a buy trade at 1,729 level today. 

 

Entry Price – Buy 1729.06        

Stop Loss – 1723.06        

Take Profit – 1735.06

Risk to Reward – 1

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

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

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Forex Signals

Gold Sideways Trading Continues – Watchout Quick Trade Setup!

The safe-haven asset failed to break its previous session’s confined trading range near below $1,730 level but erased its some losses from an intraday low mainly due to the risk-off market sentiment triggered by the fresh US-China tension. The second wave of coronavirus (COVID-19) also fueled the risk-off market tone, which eventually provided some support to the gold prices. At the moment, the yellow-metal press is currently trading at 1,724.06 and consolidating in the range between 1,717 and 1,730.07.

At the US-China front, the top diplomat Jiechi warned U.S. Secretary State Mike Pompeo that China strongly opposed the U.S. interfering in Hong Kong, G7 statement on Hong Kong initially exerted some downside pressure on the risk-tone and contributed to the modest gold gains. In the meantime, the Dragon Nation showed a demanding attitude while saying that the U.S. should handle Taiwan related issues carefully and properly. Apart from this, China also said that the U.S. should respect China’s counter-terrorism efforts in Xinxiang.

Moreover, the reason for the risk-off market sentiment could also be attributed to the intensifying second wave of coronavirus. It should be noted that the U.K.’s second vaccine trials seemed failed to provide any notable result to stop the deadly disease from spreading as Texas showed a record high jump in the hospitalization; likewise, Florida, Arizona, and Oklahoma also showed further cases. Apart from this, Japan’s virus figures rose to the highest since May 30. 

It’s worth recalling that the Dragon Nation recently impose strict measures on air travel as well as used all the possible ways, including renewed lockdown restriction to stop the deadly disease from spreading. 

Moreover, the risk-off market sentiment was further bolstered by the geopolitical tensions between North and South Korea, as well as between India and China, which also had some positive impact on the gold prices. In the meantime, the Asian Development Bank (ADB) trimmed its 2020 growth forecast for Asia from 2.2% to 0.1% also, weighed on the market’s trading sentiment.

As in result, the U.S. 10-year Treasury yields still reported losses around 0.70% while the Asian stocks reported moderate losses by the press time. At the USD front, the broad-based U.S. dollar maintained its earlier gains and stayed above 97 levels mainly due to the growing concern over the spike in COVID-19 cases in China and the U.S. which eventually turned out to be one of the key factors that kept a lid on any additional gains in the gold. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies moved 0.12% to 97.028 by 11:40 PM ET (4:40 AMGMT).

Looking forward, the traders will keep their eyes on the qualitative catalysts for near-term direction. In the meantime, the virus headlines and geopolitical headlines will be the key to watch.


Daily Support and Resistance    

S1 1689.13

S2 1706.35

S3 1716.85

Pivot Point 1723.57

R1 1734.07

R2 1740.79

R3 1758.01

The yellow metal gold is currently trading with a mixed bias, holding below a substantial resistance area of 1,731. Beneath this, bearish bias can be seen until the next support region of 1,717 and 1,714. While the closing of candle or violation of 1,731 will extend buying until the next target level of 1,744. Good luck! 

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Forex Assets

Analyzing The ‘XAU/USD’ Financial Instrument & Determining The Trading Costs Involved

Introduction

Gold is a precious metal and one of the most valuable assets in the market. It is considered to be a safe haven instrument and a popular asset class for hedging positions during market uncertainty. XAU/USD is the abbreviation for the pair Gold Spot against the US Dollar. XAU is the ticker for Gold Spot. It can be traded against other fiat currencies like EUR and GBP as well.

Understanding XAU/USD

Gold Spot is an asset that is traded in troy ounces (Oz). The XAU/USD market price represents the value of the US Dollar for 1 ounce (Oz) of Gold. It is quoted as 1 XAU per X USD. For example, if the current market price of XAU/USD is 1730.50, it signifies that each ounce of Gold is worth the US $1730.5.

XAU/USD Specification

Spread

Spread is the difference between the bid price and the ask price. The spread usually varies based on the account type used for execution. The approximate spread on the gold spot on ECN account and STP account is as follows:

ECN: 100 | STP: 130

Fee

Typically, brokers do not charge any type of fee. But, on ECN accounts, there is some commission you must pay the broker for opening and closing a position. However, the fee is not significantly high.

Slippage

Due to the high market liquidity and slower broker’s execution speed, slippage occurs. It is the difference between the trader’s demanded price and the price at which the broker executed the trade. Slippage can occur both in favor and against the trader.

Trading Range in XAU/USD

The trading range is a tabular representation of the volatility in the market for several different time frames. It gives the minimum, average, and maximum volatility in the pair for different time frames.

Procedure to assess Pip Ranges

  1. Add the ATR indicator to your chart
  2. Set the period to 1
  3. Add a 200-period SMA to this indicator
  4. Shrink the chart so you can assess a large time period
  5. Select your desired timeframe
  6. Measure the floor level and set this value as the min
  7. Measure the level of the 200-period SMA and set this as the average
  8. Measure the peak levels and set this as Max.

XAU/USD Cost as a Percent of the Trading Range

Cost as a percent of the trading range represents variation in the trade cost by considering the market’s time frame and volatility. Mathematically, it is the ratio of the volatility value and the total cost of the trade.

ECN Model Account

Spread = 100 | Slippage = 30 | Trading fee = 20

Total fee = Spread + Slippage + Trading fee

Total fee = 100 + 30 + 20 = 150 (pips)

STP Model Account

Spread = 130 | Slippage = 30 | Trading fee = 0

Total fee = Spread + Slippage + Trading fee

Total fee = 130 + 30 + 0 = 160 (pips)

The Ideal Timeframe to Trade XAU/USD

Gold is one of the oldest asset classes and one of the most reliable instruments as well. It is extensively traded in the market as most forex broker has XAU/USD available for trading. Its volatility and liquidity are no less than major currency pairs.

XAU/USD can be traded like any other foreign exchange pair. It, in fact, correlates with commodity currencies like AUD and NZD. Thus, traders use these two currencies in addition to USD, in order to analyze the pair. The same technical analysis applied to other markets can be used on the gold spot as well. However, the fundamentals do differ a little.

Coming to the costs, it technically remains the same for any time frame you trade. However, it relatively changes based on volatility and time frame. For example, a 1D trader who makes 2000 pips P/L on an average pays the same a 1H trader who makes 500 pips P/L on a trade. This is the reason the percentage values are higher in the 1H time frame than the 1D time frame.

Irrespective of the time frame you trade, you need to make sure that the market’s current volatility is above the average volatility. If you end trading when the volatility is at the minimum values, then you will have to pay the same costs for a trade that could not reach the target in your expected time.

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Forex Signals

Gold Signal Closed In Profit – Quick Update Today! 

The safe-haven-metal prices failed to maintain its previous day gains and dropped to $1,730 from $1,740, the highest since June 02 while representing 0.35% losses on the day as the broad-based U.S. dollar recently took a U-turn from the multi-day low backed by the fresh US-China tussle and contributed to the yellow-metal losses as they both have an inverse relationship. On the other hand, the risk-off market sentiment triggered by fresh conflict between US-China turned out to be one of the key factors that kept a lid on any additional losses in the gold.  

At the USD front, the broad-based U.S. dollar drew bids on the day as investors lose their confidence about sharp economy recovery after details came from the U.S. Federal Reserve’s policy meeting the day before. The U.S. economy will collapse 6.5% this year, and the unemployment rate will be 9.3% by the end of the year, as per the Fed quarterly projections. The reason for the upticks in the U.S. dollar could also be attributed to the fresh on-ging tussle between the United States and China, which eventually fueled the risk-off market sentiment. 

The U.S. dollar was dropped to the lowest since March 10 instantly after the U.S. central bank hit a dovish tone the previous day. Wherein the U.S. Federal Open Market Committee (FOMC) decided to keep the benchmark rate unchanged. In the meantime, U.S. President Donald Trump’s cheer the Fed’s action.

Apart from this, the risk-off market sentiment was further bolstered by the fears of the coronavirus (COVID-19) second wave. The reason behind the risk-off market sentiment could also be associated with the report of the OECD latest Economic Projections. Wherein the report indicated the downside fears for the global economy due to the coronavirus (COVID-19).

Looking forward, the US-China tussle will gain market attention due to the light calendar and become worth watching for a near-term direction. At the data front, the U.S. Weekly Jobless Claims and Producer Price Index for May will be key to wait for new moves in the pair.


The yellow metal gold was on a bullish break due to the dovish FOMC strategy, where FED stated interest rates are expected to linger on hold until 2022. While they are expecting deflation in GDP, the weaker dollar is encouraging buying in gold; consequently, we may see gold prices flying higher until 1,745 in the coming days. Exactly before this, the overbought gold may sink a bit unto 1,726 range to achieve retracement. So, the immediate support for gold exists at 1,726 and 1,718 levels, while resistance visits at 1,738 and 1,745. So it was a good idea to close at in profit around 1,736 level as the market reversed right after that. 

Entry Price – Buy 1733.15    

Stop Loss – 1728    

Take Profit – 1740.15

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$450/ +$600

Profit & Loss Per Micro Lot = -$45/ +$600

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Forex Signals

Safe Haven Boosts Gold – Who’s Up for Bullish Trade? 

The precious metal gold is trading with a bullish bias around 1,742 area, bouncing off above start support level of 1,736 level on the 4-hour chart. Most of the buying is fundamentally driven as the broad-based U.S. dollar is experiencing a sell-off on the day as investors turned into the safe-haven assets due to the latest retaliation between the U.S. and China. 

China stops the purchases of American soybeans and other U.S. agricultural goods. The reason for the weaker U.S. dollar could be attributed to the second wave of coronavirus. Moreover, the gains were further bolstered by the intensifying protest in dozens of U.S. cities over the death of George Floyd, which exerted some bullish impact on the safe-haven U.S. dollar and kept the gold prices under pressure. While 

Protesters occupying the area near the White House against the alleged killing of Minnesota’s George Floyd. As in result, U.S. President Donald Trump showed a willingness to use all the possible ways like “military or social” to take the situation under control. The absence of major data/events also contributed to the bullion’s profit-booking moves. Looking forward, due to the light calendar, the traders will keep their eyes on the qualitative catalysts for fresh impulse.


At this point, gold is likely to close three white soldiers ion 4-hour candles, which may lead the gold prices further higher until 1,749 area. On the higher side, gold’s immediate resistance holds at 1,742, and closing of above this level will confirm the bullish signal. On the higher side, we have placed buy trade at 1743.32 with a take profit at 1749.32 along with a stop loss around 1737.32    

Entry Price – Buy 1743.32    

Stop Loss – 1737.32    

Take Profit – 1749.32    

Risk to Reward – 1.00

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

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

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Forex Signals

XAU/USD Trades Bullish Amid Trade Tensions – Update on Sell Signal! 

The yellow metal gold traded sharply bullish to hold around 1,720 area. Most of the buying in gold was safe haven driven, leading the gold prices towards the highs of 1,726. Below this, the XAU/USD is likely to close a doji candle, which suggests odds of bearish bias retracement in gold.

The risk appetite was still there in the market after the news of potential vaccine and drug for coronavirus. A company named Merck & Co., famous for its work on developing vaccines for Ebola, said on Tuesday that it was working on a drug to cure the infection and two vaccines to prevent it.

This optimism that the world would leave coronavirus behind it and start its routine before the vaccine development added in the pair’s gains. Besides, the statement from the U.S. came in and intensified the US-China anxieties. A day before, the United States Secretary of State, Mike Pompeo, notified the U.S. Congress that the Trump administration no longer consider Hong Kong as autonomous from mainland China which is also hiking safe-haven appeal in gold.


The XAU/USD prices are now holding below 1,724 level which is extending resistance to gold. It’s a downward channel which is keeping the gold underpressure around this level. We can try to capture a quick sell trade in gold in order to secure a correction until 1,713 level. The RSI is also taking a downward turn and may cross below 50 to supported selling bias. 

Entry Price – Sell 1721.14    

Stop Loss – 1728.14    

Take Profit – 1713.14

Risk to Reward – 1.14

Profit & Loss Per Standard Lot = -$700/ +$800

Profit & Loss Per Micro Lot = -$70/ +$80

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Forex Signals

XAU/USD Soars Amid Renew US-China Tensions – Update on Buy Signal! 

The yellow metal gold traded sharply bullish to hold around 1,719 area. Most of the buying in gold was safe haven driven, which lead the gold prices towards the high’s of 1,719 level. 

The statement from the U.S. came in and intensified the US-China anxieties. A day before, the United States Secretary of State, Mike Pompeo, notified the U.S. Congress that the Trump administration no longer consider Hong Kong as autonomous from mainland China.

Consequently, the demand for safe-haven assets got boosted as the U.S. withdraw preferential trade and financial standing that the previous British colony has owned since it was handed to China in 1997. It suggests all U.S. tariffs on China would spread to Hong Kong as well. It would also make a trip to the U.S. for Hong Kong citizens more complicated and would likely cause the departure of many refugees residing and operating in Hong Kong.

The XAU/USD prices traded sharply bullish soaring from 1,710 level to place a high around 1,719 level. The resistance level of 1,723 will be eyed now extended by a downward channel and can be seen on the 4-hour timeframe. The XAU/USD’s support is likely to be found around 1,710 and 1,702. Consider taking buying trades over 1,716 today. 


Entry Price – Buy 1716.63    

Stop Loss – 1710.63    

Take Profit – 1722.63    

Risk to Reward – 1

Profit & Loss Per Standard Lot = -$500/ +$500

Profit & Loss Per Micro Lot = -$500/ +$500

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Forex Signals

Safe Haven Gold Slips – Downward Channel In Play! 

Gold prices were closed at $1710.53 after placing a high of $1735.38 and a low of $1708.78. Overall the movement of gold remained bearish throughout the day. Gold prices followed its previous day’s trend and continued to fall on Tuesday and reached near the level of $1700 support on the back of increased risk appetite in the market. The Risk-on market sentiment was caused by the reopening of the US economy from the coronavirus induced lockdowns.

From the American side, the US dollar remained under pressure against the Euro as the consumer confidence from the Conference board dropped to 86.6 against the expected 87.1 and weighed on the US dollar. The broad-based US dollar weakness pushed the already increasing XAU/USD prices lower on Wednesday.


The XAU/USD broke out of the descending triangle pattern, providing support at 1,718, and now it’s trading bearish at 1,706. The recent bearish trend in gold came in response to a downward channel supporting bearish bias among traders.

Entry Price – Sell 1708.81    

Stop Loss – 1715.81    

Take Profit – 1698.81    

Risk to Reward – 1.43

Profit & Loss Per Standard Lot = -$700/ +$1000

Profit & Loss Per Micro Lot = -$70/ +$100

Categories
Forex Signals

Gold Trades Within Sideways Range – Buckle Up for A Breakout Setup! 

The safe-haven-metal prices flashed green and erased its previous session losses mainly due to intensifying trade war tensions between the US-China. However, the yellow metal hit its highest level since December of 2012 at $1,765 on Monday, but after that, the gold prices dropped sharply during the American trading session. The reason for the sharp decline could be attributed to the positive news about the COVID-19 vaccine. 

At this moment, the yellow-metal prices are currently trading at 1,733.71 and are consolidating in the range between 1,732.05 –and 1,740.38, while representing 0.18% gains and having hit the high of $1,735.84. Moreover, the broad-based US dollar modest weakness kept a lid on any additional losses in the gold and contributed to the pair’s bullish moves.

Gold futures were higher by 0.27% at $1,739.35 by 12:43 AM ET (5:43 AM GMT). Stocks, which normally have an inverse relationship with gold, were also up on Tuesday. Despite the optimism surrounding the market about Moderna (NASDAQ: MRNA) reports of positive results on Monday from its phase one experiment for its COVID-19 vaccine, the investors preferring into safe-haven yellow metal manly because the US-China trade tussle was getting worse day by day. 

Trump warned about stopping US funds to WHO if the United Nations body will not be able to show bigger improvements and independence from China in the next 30 days. The reason behind the high preference of gold in the market could be the report that the NASDAQ stock exchange set to implement new restrictions on Chinese IPOs.


Daily Support and Resistance

S1 1666.87

S2 1704.45

S3 1718.73

Pivot Point 1742.02

R1 1756.3

R2 1779.6

R3 1817.17

On the technical side, the yellow metal gold is trading sideways below 1,739 resistance and above the support level of 1,726 level. In between this range, the market is likely to offer choppy trading sessions, until the trading range gets violated. We may see an extension of a bullish trend upon the bullish breakout of 1,739, which may open further room for buying until the next target level of 1,750 and 1,759. Below 1,726 old prices can drop until 1,716 level. Let’s wait for a breakout, and then we will open a position accordingly. Good luck! 

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Forex Market Analysis

Gold Holds Below Top Triple Pattern – Can Retail Sales Drive Breakout?

The safe-haven-metal prices extend its 3-winning streak and take bids near 3-weeks high around $1,733 while representing 0.12% increase on the day as US-China tension keeps traders in a cautious mode. As well as, investors turned into the safe-haven-metal after mixed Chinese industrial production and retail sales data, as well as Thursday’s U.S. jobless claims data. 

Earlier in the morning, the yellow-metal erases some gains in the wake of Increasing odds of no negative rates. While the possibility of another stimulus recently favored the market risk-tone before the China data. At this moment, the yellow-metal prices are currently trading at 1,735.55 and consolidate in the range between the 1,728.84 – 1,738.61.

China showed a confusing picture of its recovery from the COVID-19 virus as it’s said that industrial production in April rose 3.9% year-on-year, higher than the 1.5% predicted by analyst forecasts. Whereas, it also said that retail sales in the same month slipped 7.5% year-on-year, against analyst estimates of a 7% drop. The U.S. showed that 2.981 American citizens lost their jobs during the past week, Anyhow, the number of unemployment has been declining gradually over six weeks, but 36 million claims have been filed so far since late March.

On the other hand, the market risk sentiment got some support during the earlier morning from the increasing odds of another stimulus from the U.S., as well as, the reason for the risk-on market sentiment could also be attributed to the statement from the Fed policymakers about ruled out negative Fed rates.

Apart from these, the yellow-metal bullish moves also bolstered by the bill, which is recently passed by U.S. Senate about enabling the administration to fresh levy sanctions on Chinese officials involved in the Xinjiang case.


Support Resistance
1722.44 1752.94
1703.97 1764.97
1691.94 1783.44
Pivot Point 1734.47

Gold prices continue to hold below the triple top resistance level of 1,740. Bullish crossover of this level may drive more buying in gold, leading to its prices towards the next resistance level of 1,748. The support continues to hold around 1,728 and 1,722 level today, while the MACD is showing neutral sentiments ahead of the release of U.S. retail sales data. Besides this, the 50 EMA is also supporting the gold’s bullish bias today. Let’s keep an eye on 1,740 as selling can be seen below this, and buying above the same level today. Good luck!