ForexInfoBook presents the weekly Forex technical analysis of GOLD (XAUUSD), EURUSD and GBPUSD for 5 to 9 August 2019. During the past two weeks the price action prediction made in our previous analysis on GOLD was very accurate. The Brexit uncertainty continues to make GBP trading relatively risky and the break of 1.2400 rendered our long recommendation invalid. Similarly the support @ 1.1100 was broken on EURUSD which invalidated the long recommendation. With major risk events (ECB, BOE, Fed interest rates and NFP) behind us now, the following trading recommendations may be considered for trading this week.
GOLD Technical Analysis
Even though the FED interest rate decision was USD positive, USD weakened on back of Trade tariffs imposed on China. The NFP data was on expected lines and USD continues to be driven about by trade talks and tariffs for now. GOLD has formed a well defined upward channel with the obvious target seen at the 50% Fibonacci level at 1483.7 – While the break of last month’s high at 1453 is expected this week, the upper trend line of the channel may provide some reversal opportunities. With GOLD’s bullish bias and no expected USD positive events/news in the horizon, it would be very risky to short GOLD at these levels. When GOLD approaches 1484, aggressive traders can consider short positions on reversal confirmation.
A better approach to trading gold for this week would be to enter long positions near the lower trend line in the zone of 1401 to 1407. Close below 1400 should be seen as a break of the bullish move. Stoploss may be placed in near 1395 to avoid stop grabber moves. Traders going long at these levels can consider holding for target of 1483 this month. This recommendation may be considered invalid if the upper trend line is broken and 1483 is reached prior to the price pulling back to 1400 levels.
For complete technical analysis, please visit : https://www.forexinfobook.com/2019/08/05/forex-technical-analysis-5-august-2019/
GOLD Technical Analysis
Even though the FED interest rate decision was USD positive, USD weakened on back of Trade tariffs imposed on China. The NFP data was on expected lines and USD continues to be driven about by trade talks and tariffs for now. GOLD has formed a well defined upward channel with the obvious target seen at the 50% Fibonacci level at 1483.7 – While the break of last month’s high at 1453 is expected this week, the upper trend line of the channel may provide some reversal opportunities. With GOLD’s bullish bias and no expected USD positive events/news in the horizon, it would be very risky to short GOLD at these levels. When GOLD approaches 1484, aggressive traders can consider short positions on reversal confirmation.
A better approach to trading gold for this week would be to enter long positions near the lower trend line in the zone of 1401 to 1407. Close below 1400 should be seen as a break of the bullish move. Stoploss may be placed in near 1395 to avoid stop grabber moves. Traders going long at these levels can consider holding for target of 1483 this month. This recommendation may be considered invalid if the upper trend line is broken and 1483 is reached prior to the price pulling back to 1400 levels.
For complete technical analysis, please visit : https://www.forexinfobook.com/2019/08/05/forex-technical-analysis-5-august-2019/
