Gold: The sharp bull run has just begun to roll over [Video]

Richard Perry Independent Analyst

Gold

The sharp bull run (which added around 12% back on to gold) has just begun to roll over. The near term positive momentum is just turning into consolidation. The daily chart shows a small negative candle yesterday (albeit with a positive close) but this is now being pulled lower this morning. The impetus in the rise on Stochastics and RSI is tempering. The hourly chart shows this as more of a consolidation but the price is still at risk of a near term drift back towards the key breakout $1553/$1560 which is a pivot area. The hourly chart also shows the initial support to watch remains at $1585 which has turned into a pivot over the past couple of days. A drop below $1585 would open the move towards $1553/$1560. Resistance is beginning to form under the $1635 rebound high, at $1625 and $1617 today. Gold has turned into a near term consolidation with corrective potential (especially if hourly RSI begins to fall below 40). However, we would continue to view near term weakness on gold as a medium term buying opportunity.

Author

Richard Perry

Independent Analyst

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD remains above nine-day EMA near 1.3650

GBP/USD recovers its recent losses from the previous session, trading around 1.3680 during the European hours on Wednesday. The technical analysis of the daily chart indicates a sustained bullish bias, as the pair trades within an ascending channel pattern.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

S&P 500 at 7,000 is a valuation test, not a liquidity problem

The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.