GOLD: Strong resistance at 1218/19

Jason Sen DayTradeIdeas.co.uk

Daily Forecast - 24 January 2017

Gold Spot

Gold most important of the day is obviously strong resistance at 1218/19. We may be witnessing the top of the bear market correction as bears sell in to this level. Shorts need stops above 1222 but be ready to buy a break above here for some profit taking on longs at the next targets of 1228/29 & 1232/33. Failure to beat 1218/19 targets 1209/10 (& this level worked perfectly yesterday as we bottomed exactly here). However the bear trend is likely to resume at some stage this week so below here helps to confirm a negative outlook & a top in place, targeting 1206/05 then support at 1197/95. A good chance of a low for the day but longs will be increasingly risky (if I'm right about the bear trend resuming). A break lower therefore is an added sell signal & sees 1197/96 act as resistance targeting the best support for the week at 1183/82 for some profit taking on shorts as we become oversold in the short term.

Daily Report GOLD Current Trading Positions

Sell 40%

Buy 60%

Avg Sell Price 1196.00

Avg Buy Price 1215.62

Liquidity Distribution

Author

Jason Sen

DayTradeIdeas.co.uk

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.