(MENAFN- DailyFX) Gold prices in consolidation below technical resistance ahead of key event risk next week Check out our 2018 Gold(XAU/USD) projections in our Join Michael for Live Weekly Strategy Webinars on Gold Daily Price Chart (XAU/USD) Technical Outlook: Gold prices (XAU/USD) have set a well-defined June opening range just below a key resistance range at 1302/07- a region defined by the October highs, the January, March and May lows and the yearly open. Note that the 75% line of the also converges on this region into the start of next week with a pending in view.
A breach above this key region shifts the focus to a more significant resistance confluence level at 1313/15 where he converges on the 100% extension and 38.2% retracement (bearish invalidation).
New to Forex Trading? Get started with this
Gold 240min Price Chart (XAU/USD) Notes: A closer look at near-term price action sees gold prices consolidating off the May lows with our immediate focus on a break of the 1291-1305 range. A topside breach would shift the focus towards 1313/15- an area of interest for possible near-term exhaustion / short-entries.
A break below 1291 shifts the focus back towards the 61.8% retracement at 1285- weakness beyond this level would mark resumption for the broader downtrend with such a scenario targeting 1263.
Why does the average trader lose?
Bottom line: Technical considerations made earlier in the week on the , favor a near-term topside breach of this consolidation in gold prices before moving lower. That said, we would need to breach downslope resistance (1315) to suggest a more significant low is in place. For now, look for a break of this near-term consolidation range heading into next week with central bank interest rate decisions next week from the FOMC , ECB & BoJ and the Trump / Kim Jong Un, North Korean Summit likely for fuel added volatility in ‘risk sensitive' assets.
For a complete breakdown of Michael's trading strategy, review his
Spot Gold IG Client Positioning A summary of shows traders are net-long Gold- the ratio stands at +3.86 (79.4% of traders are long) bearishreading Long positions are 0.8% lower than yesterday and 2.2% lower from last week Short positions are 9.3% higher than yesterday and 13.8% higher from last week We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week and the recent changes in sentiment warn that the current Spot Gold price trend may soon reverse higher despite the fact traders remain net-long. See how shifts in Gold retail positioning are impacting trend-
- Stay updated on the latest economic developments and upcoming event risk
Other Setups in Play
- Written by , Currency Strategist with DailyFX
Follow Michael on Twitter or contact him at
MENAFN1106201800760000ID1096994516
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.