Gold buyers can be definitely happy with the first few days of October. September ended on the monthly lows, so optimism was not he strongest feeling among traders. What is more, the price was under the influence of a huge head and shoulders pattern, which usually is a grim reaper for the bullish trends.

I have to admit, that the Head and Shoulders formation looked really nice. It was a proper, very well-formed pattern. I was totally not surprised, when the price broke the neckline on the 1483 USD/oz (yellow). After this kind of breakouts, it is absolutely normal, that the price reverses and tests the broken support as a closest resistance. The same happened here but what was unusual is that the new resistance did not work at all. Price returned above the yellow line with ease, leaving new sellers pretty much empty handed.False breakout as its finest.

Gold Daily

New week, brought us the test of the yellow area as a closest support. Test was positive for the buyers and the price went up again. October’s reversal allowed to create another technical formation – flag (blue lines). In this case, flag is a bullish formation and should end with a breakout to the upside.

That is just a theory though. As you can see, today’s contact with the upper line of the flag is negative and the price creates the shooting star candlestick. That delays the buy signal for a while. The proper signal to go long, will be triggered, when the price will close a day above the upper blue line. Chances for that are currently still quite high.

Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD breaks below 1.0800 amid data imbalances, risk-off

A disappointing German ZEW Survey, better than expected US data and looming coronavirus concerns are pushing EUR/USD lower. 1.0770 next critical support.


GBP/USD bounces above 1.30 as markets shrug off wage figures

GBP/USD is trading above 1.30 as investors ignore weak UK wage figures and Brexit concerns once again. Coronavirus headlines are eyed.


Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors