Spot Gold pulls back on profit-taking

Slobodan Drvenica Windsor Brokers

Spot Gold pulls back on profit-taking / technicals; $1245 offers very strong support

GOLD

Spot Gold pulled back from fresh two-week high at $1265 on Thursday, trimming strong gains of the previous day, when yellow metal surged nearly 2% after political crisis broke out in the US.
Strong fall of dollar on political uncertainty over raising doubts whether US president Trump will be able to follow through with his campaign promises on tax cuts and fiscal stimulus, increased demand for safe haven assets and boosted gold price.
Wednesday’s rally broke above $154 pivot (daily Kijun-sen) and cracked next target at $1264 (Fibo 61.8% of $1295/$1214 descend), generating bullish signals, but the rally showed signs of fatigue.
Gold price eased on profit-taking and dollar managing to consolidate after previous day’s losses, threaten to extend pullback.
Scenario is supported by overbought slow stochastic on daily chart and RSI turning south.

Former strong resistances at $1245 zone (daily cloud top / converged 20 / 200 / 55 SMA’s) now act as strong support which should ideally contain correction and keep near-term bulls intact.
Otherwise, stronger correction of $1214/$1265 rally could be expected on sustained break below this support.

Res: 1254; 1260; 1265; 1270
Sup: 1249; 1245; 1240; 1236

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

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 climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

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.