• By Nick
  • May 19, 2017

TRADE BULLETIN: 18th MAY

TRADE BULLETIN: 18th MAY

# BUY GOLD

ENTRY: 1254.00
STOP LOSS: 11246.00
TAKE PROFIT: 1268.00

RISK/REWARD: 80 points / 140 points

BROKERS COMMENTARY: FX STREET

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.

Be advised that TRADE SET-UP outcomes are unknown!
 Market Timing is subject to unpredictable events that may adversely affect the outcome of each trade.
 Please use appropriate Capital Management.

Trading margined Forex and Derivatives carries a high level of risk, including the risk of losing substantially more than your initial investment. Also, you do not own or have any rights to the underlying assets. The effect of leverage is that both gains and losses are magnified. You should only trade if you can afford to carry these risks. Note that trading derivatives may not be suitable for all type of investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. Please further note that any views or opinions expressed in this post do not necessarily represent those of myFXplan Pty Ltd. Additionally, your call may be recorded for training and monitoring purposes and any advice provided to you on our website or by our representatives is general advice only, and does not take into account your objectives, financial situation or needs. You should therefore consider our PDS and the appropriateness of our advice before making any decision about using our services. myFXplan Pty Ltd is an Authorised Representative (CAR 001241758) of EightCap Pty Ltd (ABN 73 139 495 944). Eightcap is regulated by ASIC (AFSL 391441). This AFSL authorises Eightcap to provide financial services to people in Australia. The information on this email is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. myFXplan is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.

1 comment

Leave a Reply