Gold: Bulls now need to regather themselves [Video]

Richard Perry Independent Analyst

Gold

Our fears of gold being dragged under by broader market selling pressure came to pass yesterday as the price fell -3.5% on the day. We have been looking for buy signals within the three month uptrend, but that trendline was smashed by the move and the bulls now need to regather themselves. If the move is anything like the similar, margin call related sell-off of 28th Feb, the market dusted itself down and went again higher. It is interesting this morning to see gold trading higher and already +$35 off its earlier low at $1551. Within the context of still positively configured medium term momentum signals, we remain medium term buyers of gold into weakness whilst the support at $1536 remains intact. Near term positive signals are coming through on the hourly chart this morning, but hourly RSI above 60 would be needed to say the bulls are serious again. Resistance at $1606/$1611 now needs to be overcome to suggest a resumption of the move higher. A bull failure, with a negative close and move below $1560 (yesterday’s low) would be a concern that momentum of the correction has not finished yet.

Author

Richard Perry

Independent Analyst

EUR/USD weakens to near 1.1900 as traders eye US data

The EUR/USD pair loses ground to around 1.1905, snapping the two-day winning streak during the early European trading hours on Tuesday. Markets might turn cautious ahead of the release of key US economic data, including US employment and inflation reports that were pushed back slightly due to the recently ended four-day government shutdown.

GBP/USD edges lower below 1.3700 on UK political risks, BoE rate cut bets

The GBP/USD pair trades on a weaker note around 1.3685 during the European session on Tuesday. The Pound Sterling edges lower against the US Dollar amid political risk in the United Kingdom and rising expectations of near-term Bank of England rate cuts.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.