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MNI DAILY TECHNICAL ANALYSIS - Gold Bulls in Driver’s Seat

Price Signal Summary – Gold Bulls Remain in Driver’s Seat

  • S&P E-Minis trend conditions are unchanged and signals remain bullish. Fresh cycle highs confirm a resumption of the primary uptrend and maintain the bullish price sequence of higher highs and higher lows. Note that moving average studies are in a bull-mode setup. A bear threat in Eurostoxx 50 futures remains present. The contract traded sharply lower on Oct 15 and has recently pierced support around the 50-day EMA, at 4947.57. A clear break of this average would undermine a recent bullish theme.
  • GBPUSD remains tilted toward recent lows, and a bearish theme remains intact. A resumption of the downtrend that started Sep 26, would open 1.2959, a Fibonacci retracement point. USDJPY traded higher Monday confirming a resumption of the uptrend that started Sep 16. Price has traded above the 50.0% retracement of the downleg posted off the July 3rd high. The move higher sets the scene for an extension towards 153.40, the 61.8% retracement point. A bear cycle in AUDUSD remains intact Monday’s move down reinforces this condition. Price has recently breached both the 20- and 50-day EMAs. This exposes 0.6622, the Sep 11 low and a key support.
  • Gold bulls remain in the driver’s seat. Last week’s climb resulted in a break of $2685.6, the Sep 26 high, confirming a resumption of the primary uptrend. The yellow metal has also cleared $2700.0, reinforcing current trend conditions. WTI futures remain softer following last week’s sell-off. A continuation lower would threaten the recent bullish theme and expose support at $66.33, the Oct 1 low, and $64.61, the Sep 10 low and a key support.
  • Bund futures traded sharply lower Monday highlighting the end of the recent corrective phase between Oct 10 - 16. This reinforces a bearish theme and attention is on 132.75, the Oct 10 low and a bear trigger. A bear cycle in Gilt futures remains present and the latest recovery appears to have been a correction. Note that recent gains have allowed an oversold trend condition to unwind. The contract remains below resistance at 98.11, the Sep 2 low.

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Price Signal Summary – Gold Bulls Remain in Driver’s Seat

  • S&P E-Minis trend conditions are unchanged and signals remain bullish. Fresh cycle highs confirm a resumption of the primary uptrend and maintain the bullish price sequence of higher highs and higher lows. Note that moving average studies are in a bull-mode setup. A bear threat in Eurostoxx 50 futures remains present. The contract traded sharply lower on Oct 15 and has recently pierced support around the 50-day EMA, at 4947.57. A clear break of this average would undermine a recent bullish theme.
  • GBPUSD remains tilted toward recent lows, and a bearish theme remains intact. A resumption of the downtrend that started Sep 26, would open 1.2959, a Fibonacci retracement point. USDJPY traded higher Monday confirming a resumption of the uptrend that started Sep 16. Price has traded above the 50.0% retracement of the downleg posted off the July 3rd high. The move higher sets the scene for an extension towards 153.40, the 61.8% retracement point. A bear cycle in AUDUSD remains intact Monday’s move down reinforces this condition. Price has recently breached both the 20- and 50-day EMAs. This exposes 0.6622, the Sep 11 low and a key support.
  • Gold bulls remain in the driver’s seat. Last week’s climb resulted in a break of $2685.6, the Sep 26 high, confirming a resumption of the primary uptrend. The yellow metal has also cleared $2700.0, reinforcing current trend conditions. WTI futures remain softer following last week’s sell-off. A continuation lower would threaten the recent bullish theme and expose support at $66.33, the Oct 1 low, and $64.61, the Sep 10 low and a key support.
  • Bund futures traded sharply lower Monday highlighting the end of the recent corrective phase between Oct 10 - 16. This reinforces a bearish theme and attention is on 132.75, the Oct 10 low and a bear trigger. A bear cycle in Gilt futures remains present and the latest recovery appears to have been a correction. Note that recent gains have allowed an oversold trend condition to unwind. The contract remains below resistance at 98.11, the Sep 2 low.

FOREIGN EXCHANGE    

Keep reading...Show less