The precious metal has broken out

19 February, 2018

The precious metal has broken out from its descending wedge around 1331.00 and moved higher to create a lower high at 1361.80.The price then dropped back lower to support at 1344.16. Resistance above can be found at 1361.80 and the January high at 1365.30. A break above this resistance targets 1375.50 and 1389.00 with a large resistive zone around 1400.00. However a break above 1412.50 clears the way towards 1450.00 and 1464.00.

Support on the Gold chart can be seen at 1344.16 with the 50 period MA below at 1339.74 and the 100 period MA at 1335.90. The next level of support then comes in at 1333.66 and then 1327.5, which is the level that the 200 period MA is currently at. The descending red trend line top of the wedge is currently around 1322.00. The 1320.00 has been used as support on a number of occasions over the last two weeks and below this level is 1311.41. The support area around 1300.00 has been used on the many times in the past number of years and continues to impact price moves.

The GBPUSD pair has formed a descending broadening wedge since late January as it follows developments with the recent Stock market decline and economic data releases. Weakness in the US Dollar has been a strong theme but the UK Economy is flagging warning signs as the Brexit choke hold continues. On Friday UK Retail missed expectation to the downside. The Inflation Report Hearings will take place on Wednesday afternoon and this will provide an insight into BOE thinking on future monetary policy.

Resistance for the pair can be found at the red trend line wedge top around 1.41378. Above this level resistance is coming in at 1.41796 and this year’s high of 1.43450. Further on above these levels 1.45187 can prove difficult with 1.46626 and 1.47690 in extension. Supports below the current price level come in at 1.40000 and 1.38354 with the 50 DMA at 1.37849. The September high of 1.36568 is a significant level on the daily chart with a move below here suggesting a more sustained drop. The 100 Day MA is found alongside the wedge bottom at 1.35752 with 1.34500 below containing the rising Black supporting trend line. The 200 DMA is found at 1.33456 with the 1.32246 and 1.30586 support levels below.

Source link  
Equity market causes investors confusion

As a turbulent December in equity markets draws to a close, there's one thing traders and investors can agree on: these are not usual times, especially...

Global debt exceeded $ 184 trillion

According to the International Monetary Fund (IMF), the global debt has achieved $184 trillion with $86,000 per person, a figure that is twice larger than...

Why U.S. markets are under pressure

Global markets are on the rise on Wednesday, adding more than 1.2% on the MSCI Asia ex Japan index. Japanese Nikkei jumped by 2%. Chinese...

Dow recovers after 500 points decline

Stocks closed higher Monday as major indexes bounced back from earlier losses as renewed confidence in the strength of the U.S. economy offset lingering...

Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...

Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...

Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...

U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...

In the past 24 hours Bitcoin has lost -0.55% and reached $3653.9830763. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.5351% and is now at $1.1563. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -5.14% and is now at $121.161034294. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Daily Forex Market Reviews

Forex Currencies Forecasts

Top 10 Forex Brokers 2019

# Broker Review
5FIBO GroupFIBO Group83%
10FP MarketsFP Markets69%