- The price of gold shot higher today after another round of high jobless claims data.
- USD 1700 is the next logical target for the bulls and technical levels have been working nicely.
Fundamental backdrop
Gold moved another wave higher even as stocks rallied today following the news that 6.606 million new jobless claims had been made over the last week. This is the 3rd week in a row the number has come higher than forecasts but the number was marginally lower than the 6.867 million last week. There was also the news that the Federal Reserve will add an additional action to provide up to USD 2.3 trillion in loans to support the economy they went on to say they will keep monitoring markets to see if more help is needed
The precious metal has been in serious demand as the damage from the economic shutdowns is being felt in the US. The dollar index is currently 0.66% lower on the session and this is really helping the boost in the yellow metal.
In terms on today's latest COVID-19 numbers:
Italy COVID-19 cases rise 2.9% to 143,625 (Prev. 139,442). In the UK COVID-19 the death toll rose 12.4% to 7,978 (prev. +15.2% at 7,097) and lastly, in New York COVID-19 death toll rises by 12.7% 7,067 (prev. +14.2% at 6,268).
So we are seeing a fall in the EU now but the UK and US are struggling to get a handle on these numbers and it seems they might not be at the peak just yet. Despite this, there are still issues coming out of the Eurogroup meeting with Chief Centeno tweeting "we are very close to an agreement". May I remind you many of the delegates said something similar yesterday.
Technical picture
Gold has been conforming very nicely to the technicals of late and Elliott Wave and Fibonacci have been partially useful. In this recent up wave, the price has followed the 5 wave pattern higher to the letter. The only issue is now that we could be leading into a massive wave 3 with the sud divided waves in the middle. If this does end up being the case the bull targets will be way above the USD 1700 resistance level that is next on the hit list.
On this 4-hour chart below the price has moved into the ascending triangle pattern. There is a serious probability that the price could accelerate beyond the pattern to the upside but then the top of the pattern could be used as support. The 161.8% extension target has not been met just yet so keep an eye on a small short term pullback there. The red rectangle was the 76.4% retracement and once broken the market used the level as a support zone.
The longer-term Fib extension targets measuring the wave from USD 1703.27 to 1451.30 take the 138.2% extension to near USD 1800 and the 161.8% close to USD 1860.00. In the future is the price continues to rise these levels need to be watched.
-637220464659172728.png)
Additional levels
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended Content
Editors’ Picks
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD: No respite to the sell-off ahead of US CPI
The rally in the Greenback remained well and sound for yet another session, weighing on the risk-linked assets and sending EUR/USD to new 2024 lows in the vicinity of 1.0590 prior to key US data releases.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
SOL Price Forecast: Solana bulls maintain $250 target as Binance lists ACT and PNUT
Solana price retraced 7% from $225 to $205 on Tuesday, halting a seven-day winning streak that saw SOL become the third-largest cryptocurrency by market capitalization.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.