GOLD – First retest of previous support

Stuart Cowell HFM

GOLD, Daily, H4 & H1

Last Tuesday (November 5) Gold closed down some $26.00, with a large bearish candle and below the key 20-day moving average. It had also closed below $1486 which had been a key Fibonacci extension level in the summer rally to $1555. The price paused Wednesday before another significant sell-off ($22.00) on Thursday (November 7). The close on Thursday took the price below the next key support level at $1470.00. Further falls on Friday and Monday occurred as the $1450 level was tested but the price failed to close lower again. Today, the price is re-tracing and once again testing back to the $1470.00 level.

The Crossing EMA Strategy (Daily) would have been triggered on November 5 with the price moving down to Target 1 (1 x ATR $1469) November 7 and Target 2 (2.5 x ATR – $1488) November 12 for a net gain of $35.00 or 3500 pips.

The H4 time-frame trigger LONG yesterday at $1462 producing T1 at $1467.80, T2 at $1476.00 and an initial Stop Loss, below the turn in the market at $1451.00. The H1 time- frame, from a failed move lower this morning during the Asian session, has turned higher This triggered a long entry at $1465.80, with T1 at $1468.20, T2 at 1471 .80 and an initial Stop loss at $1461.50.

The higher time frames (Weekly and Monthly) remain biased to the upside (despite last week’s very significant sell-off) and a breach and break on the Daily time frame back over the $1470-86 zone would be required to moves prices back towards $1500, $1515, $1535 and that summer high at $1550. Weekly support sits at $1440 and $1400.

Author

Stuart Cowell

HFM

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, c

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.