Slobodan Drvenica
Windsor Brokers
XAU/USD
Gold price rose to the highest since Oct 4 on Monday, in extension of strong rally last Thu/Fri, inflated by the latest decision by China to further boost its stimulus to the economy.
The news sparked fresh risk aversion by signal that Chinese economic growth is stalling, giving fresh boost to safe-haven demand however, technical picture is not so encouraging.
Daily studies are mixed as MA’s turned to bullish setup, but 14-d momentum is heading south and cracking the centreline.
Double-Doji on weekly chart adds to signals of indecision (although long tails and dips contained by psychological $2600 support suggest that bids are still strong), along with overbought stochastic and fading bullish momentum, while WMA’s remain in bullish configuration.
Market focus will remain on Fed, as investors expect more details about the central bank’s next steps on monetary policy, which will be likely one of key drivers of the yellow metal.
Larger bulls are expected to remain fully in play if current consolidation under new all-time high stays above $2600 support.
Near-term action faces solid support at $2636 (daily Tenkan-sen), holding above which to keep immediate bias with bulls and guard $2600 support.
Res: 2666; 2673; 2685; 2700.
Sup: 2643; 2636; 2622; 2602.
Interested in XAU/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD stays pressured toward 1.0500, US PPI data next in focus
EUR/USD remains heavy toward 1.0500 in the European session on Thursday, hanging at yearly lows. The Trump trades-driven unabated US Dollar demand and tarrifs threat weigh on the pair. Mixed Eurozone data fail to lift the Euro. Eyes turn to US PPI data and Fed Chair Powell.
GBP/USD holds losses near 1.2650 on relentless US Dollar buying
GBP/USD is holding losses while flirting with multi-month lows near 1.2650 in European trading on Thursday. The pair remains vulnerable amid a broadly firmer US Dollar and softer risk tone even as BoE policymakers stick to a cautious stance on policy. Speeches from Powell and Bailey are eyed.
Gold price approaches 100-day SMA/50% Fibo. confluence amid sustained USD buying
Gold price touches its lowest level since September 19, around $2,550 area during the early part of the European session on Thursday. The US Dollar buying remains unabated in the wake of optimism over the expected expansionary policies by US President-elect Donald Trump.
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
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.