• By Nick
  • May 19, 2017




ENTRY: 1254.00
STOP LOSS: 11246.00
TAKE PROFIT: 1268.00

RISK/REWARD: 80 points / 140 points


FX Positioning Analysis highlights that Gold has now reached the key resistance level in a change of the “market climate”. The key resistance level was 1,260 and that’s been hit. What was mentioned yesterday was that USD/JPY and the euro were driving forces behind the decline in the DXY due partly to yields differentials narrowing. The Trump news since that article has propelled the upside in gold due to risk aversion, a further drop in yields and a narrowing in the spread between USD/JPY.

Where now for Gold?

From here, Wall Street’s close will take over and a level to watch for in the Dow is the is the 200 smoothed sma on the 4hr sticks located at 2,362.1. Should that give way today, Tokyo could be a blood bath, fuelling further bids in the Yen, especially on positive GDP results in today’s Q1 data for Japan after this week’s hawkish remarks from Kuroda. The BoJ governor said he was “quite sure” the central bank could smoothly exit from its massive monetary stimulus when the appropriate time to do so came which has already boosted the yen this week. The next upside level is $1,270 and $1,277 as previous key resistance.

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