Subscribe to RSS

Forex Technical Analysis XAU/USD : 7 December 2015

ECB has pushed gold prices up

On Friday gold was gaining ground for the 2nd straight day. Investors reacted on the results of the ECB meeting and the weakening US dollar. Some market participants believe the massive shifting from the shorts to the longs in gold has begun. In recent weeks the stockpiles of SPDR Gold Trust, world biggest gold-backed ETF fund, fell to the lowest since September 2008. The number of the shorts on COMEX has hit the historical high. Will the gold prices continue to rise?

On Thursday the ECB has cut the already negative deposit rate from -0.2% to -0.3%. Moreover, the Bank has expanded its bond-buying programme which stands for further monetary easing. The additional growth factor for gold is the vast US dollar weakening as those two assets have strong inverse correlation. Since the start of the 2015 the gold has lost 8.4% while the US dollar index has advanced 7.5%. On Friday the November US non-farm payrolls came out showing the additional 211’000 jobs were created exceeding the expected increase of 200’000. Nevertheless, markets expect the minor rise in the US interest rates as the result of the Fed meeting on December 16, given the latest macroeconomic data. The factors made the gold surge.

Gold_USD

Gold

On the daily chart Gold: D1 is correcting upwards from its 6-year low having surpassed the support of the downtrend. The Parabolic indicator and MACD have formed the buy signals. The Bollinger bands have severely widened which may mean high volatility. RSI has formed the positive divergence. It is on the rise but has not yet reached the overbought zone. The bullish trend may develop in case the gold surpasses the third fractal high and the second Fibonacci level or the second fractal at 1100 or 1088. This level may serve the point of entry. The initial risk limit may be placed below the six-year low at 1046. Having opened the pending order we shall move the stop to the next fractal low following the Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level at 1046 without reaching the order at 1100 or 1088, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Buy
Buy stop above 1100 or 1088
Stop loss below 1046

More Details

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Free $200 Earn with Binary No Deposit Bonus – Ayrex

Free $200 Earn with Binary No Deposit Bonus – Ayrex(0)

Earn $200 Free with Binary Options No Deposit Bonus to all new activated trading account. Ayrex presents its very first Binary Options No Deposit Bonus for new traders. Sign up to get FREE $30 and turn them into a fully withdrawable $200! Link: $200 Earn with No Deposit Bonus Link:  $100 Free Win in Just One

$30 Free No Deposit Welcome Bonus Campaign – Tickmill

$30 Free No Deposit Welcome Bonus Campaign – Tickmill(0)

$30 Free No Deposit Welcome Bonus Campaign to All new traders. $30 Free Welcome Account is available to all new clients who expressed a wish for it during the registration process. Link:  $30 Free Welcome Bonus Offer Available to: All new traders Ending Date: 31 December 2017 Bonus Offer: $30 Free No Deposit Welcome Bonus

Get $2017 No Deposit Hot Bonus Promotion – FreshForex

Get $2017 No Deposit Hot Bonus Promotion – FreshForex(0)

$2017 No Deposit Hot Forex Bonus Offer to all new verified customers. The $2017 Hot No Deposit Forex Bonus offers you a unique opportunity to test trading strategies of FreshForex Link:  $2017 No Deposit Hot Bonus offers Available to: All New Traders. Ending Date: 30 April 2017 Bonus Offer: $2017 No Deposit Exclusive Hot Bonus

100% Real Money Cash Back Bonus Promotion – UFX

100% Real Money Cash Back Bonus Promotion – UFX(0)

100% Real Money CashBack Promotion 2018 to all new and existing clients. Join and gain exclusive access to the ONLY online trading 100% Cashback rewards bonus program Link:  100% Real Money CashBack Promotion Link:  $50 Forex No Deposit Bonus Promotion Available to: All new trading account Ending Date: 31 December 2017 Bonus offer: 100% Real

$15 Cashback Rebate Bonus per Lot Traded – FBS

$15 Cashback Rebate Bonus per Lot Traded – FBS(0)

$15 Cash back Rebate Forex Bonus per Lot Traded to All new traders. $15 Cashback Rebate Forex Bonus service is unavailable for the clients, who registered their accounts via their partners. Link:  $15 Cashback Rebate per Lot Traded Link:  100% Forex Deposit Bonus Promotion Link:  100% Forex Deposit Bonus Promotion Available to: All new traders

100% Easy Welcome Deposit Bonus Promo – Trade12

100% Easy Welcome Deposit Bonus Promo – Trade12(0)

Free Daily Forex Trading Signals via SMS. EMAIL. SKYPE. WHATSAPP and 100% Easy Welcome Deposit Bonus Promo to your Live Trading Account, Free E-Books Link:  Free Daily Forex Trading Signals Link:  Get 100% Welcome Deposit Bonus Link:  Get Forex Free E-Books Available to: All new clients Ending Date: 31 December 2017 Bonus Offer: Get 100%

$50 Forex Free No Deposit Bonus Promo Action – FortFs

$50 Forex Free No Deposit Bonus Promo Action – FortFs(0)

$50 Forex Free No Deposit Bonus Promo Action to all eligible clients. Every client who passed the verification process in their trader’s room can get the $50 Forex Free No Deposit Bonus Promo Action Link: $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Bonus Promo

Get 25% Trading Credit Bonus up to $5000 – HYCM

Get 25% Trading Credit Bonus up to $5000 – HYCM(0)

25% Forex Trading Credit Bonus Promo available on your Deposits. Experience Some of HYCM New Features, Services and Offers Receive 25% Forex trading credit bonus Link:  25% Trading Bonus on your Deposits Ending Date:  31 December 2017 Available to:   New Clients only Bonus Offer: 25% Forex Trading Bonus Promo Available on your deposits to New Clients

100% Bonus to your first Deposit Up to $300 – AvaTrade

100% Bonus to your first Deposit Up to $300 – AvaTrade(0)

100% Bonus Limited Time Offer to your first deposit Up to $300. Start trading today and in honour of our Irish roots we’ll give you a St. Patricks Day special bonus of up to 100% Link:  100% Special Bonus to Your First Deposit Available to: All new account Ending Date: 31 December 2017 Bonus offer:

Forex Live Contest Total Prize Pool $15000 – FxGrow

Forex Live Contest Total Prize Pool $15000 – FxGrow(0)

Live Trading Forex Contest. The Live Forex trading forex contest that is offered for ECN PLUS and ECN VIP live account holders. Link:  Forex Live Trading Contest Available to: All new trading account Ending Date: 7 April 2017 Terms and Conditions of the Clash for Cash- Live Trading Contest By applying for Cash for Clash

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories