Gold unexpectedly reversed, opening up risks to the downside in the short term

Jason Sen DayTradeIdeas.co.uk

XAU/USD

Gold initially beat 3390 for an important buy signal hitting targets of 3393, 3400, 3405 & 3420/3425.
However Gold unexpectedly collapsed from 3438 breaking strong support at 3410/07.
The break below 3400 hit the downside target of 3389/87 & we fell as far as 3375.
The false breakout fooled me & yesterday' bearish engulfing candle indicates a bull trap meaning further losses are expected in to the end of the week.
We now have resistance at 3389/93 so could see a high for the day here on any short term recovery.
Shorts need stops above 3398.
A break below 3373 is more likely & targets 3365/60.
A low for the day is certainly possible here in short term overbought conditions - it's a little risky & longs need stops below 3355 but if the level holds we could see a good bounce to 3374 & as far as 3385, so it could be worth the risk.
Just be aware that a break below 3355 targets a buying opportunity at 3343/39.
Longs need stops below 3333 - targets: 3357, 3365 - 3372 looks possible.
Just be aware that if Gold unexpectedly beats 3398 we can target 3405/08 but unlikely any further.

XAG/USD

Silver unexpectedly collapsed from 3952 & broke back below 3915/10 so bulls have lost control & longs in the short term.
We just made an over night low 2 points above the support at 3875/70.
However I think this level will be broken at some stage today & we will continue lower towards better support at 3853/48.
A low for the day is likely here but longs need stops below 3840.
Targets: 3864 & 3873 for profit taking.
Just be aware that a break below 3840 risks a slide to 3800/3790.

Author

Jason Sen

DayTradeIdeas.co.uk

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.