Cycle Trading: Good News For Gold

LikesMoney Independent Analyst

Gold dropped 1.79% on Thursday to break below the week 22 low.

This is good news for gold.

It has been 5 weeks since gold printed its week 22 low. Gold has not convincingly confirmed that week 22 was the intermediate cycle low. So by breaking below the week 22 low extends the intermediate cycle decline. Which means that once gold prints it's daily cycle low, it will quite likely be the intermediate cycle low. So instead of wasting 5 weeks of going nowhere, once the DCL forms, that will give gold a fresh set of "downs".

Author

LikesMoney

Independent Analyst

Assets (such as stocks, gold, and the dollar) have identifiable cycles.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.