Gold: A sustained break above 1768 must be seen as the next buy signal

Jason Sen DayTradeIdeas.co.uk

Gold – Silver

Gold Spot had a 1 day consolidation phase holding the bull market high seen in May at 1762/64 & first support at 1744/42 perfectly. We wrote: we are not severely overbought & this is a strong bull trend. So shorts may actually be risky. A sustained break above 1768 must be seen as the next buy signal after the 2 month consolidation phase (very common in a bull markets)... Buy signal confirmed as we hit the first breakout target of 1773. Outlook remains positive.

Silver Spot bottomed 3 ticks above best support at 1760/50 & higher also of course, through 1760/50 to re-target 1780 & 1800/10. We topped exactly here over night but outlook remains positive.

Daily Analysis

Gold beat the bull market high seen in May at 1762/64 for the next buy signal after the 2 month consolidation phase (very common in a bull markets) targeting 1773, minor resistance at 1778/80 & perhaps as far as 1789/91 this week.

Best support at 1764/62 of course. Longs need stops below 1758. A unexpected break lower risks a retest of strong support at 1744/42. Longs need stops below 1738.

Silver bulls also back in control as we hit all targets as far as 1800/10 before the 2 week high at 1825/28, which should be seen before the weekend. A break higher tests the June high at 1836.

Buying opportunity at 1765/55, with stops below 1745. An unexpected break lower targets 1725/20.

Trends

Weekly outlook is positive.

Daily outlook is neutral.

Short Term outlook is positive.

Author

Jason Sen

DayTradeIdeas.co.uk

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.