Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Join the Facebook community of FBS!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Email tooltip

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE

View
Why did gold turn down? And did it really?

Why did gold turn down? And did it really?

Information is not investment advice

XAU/USD is consolidating after spiking to the 7-year high at $1,689. If we compare the current price action on the D1 with what was seen in January (the price spiked up and then consolidated without declining much), we’ll see that there are more candlesticks with long upper shadows – a sign that there are sellers of gold in the $1,650 area.

XAUUSDDaily.png

Technically, there is a big chance of a correction to the downside: gold simply rose too fast, too far. Market players are probably taking profit in gold to offset losses in other markets, so they are closing the previous buy positions in XAU/USD.

On the W1, there was a bullish gap after the previous big green candlestick. The current candlestick is at the upper Bollinger band and far away from the Moving Averages. For the general outlook to stay positive, the current weekly candlestick has to close above $1,614 (the middle of the previous candlestick). A close below this level will lead to the formation of the “Dark cloud cover” pattern and a more substantial retracement to the downside.

XAUUSDWeekly.png

On the H1, the price is at the lower Bollinger band and the Stochastic Oscillator is at the oversold area. Still, that doesn’t mean that the decline is over. An advance above $1,636 is needed to open the way up to $1,644 and $1,650.  

XAUUSDH1.png

The price is testing support in the $1,625 zone. The next support levels lie at $1,613, $1,600 and $1,584. It will be logical to look for buying opportunities at these levels.

Keep in mind the idea that apart from this short-term profit taking, there are fundamental reasons to buy gold: it’s a safe haven in a world hit by a coronavirus. As Deutsche Bank strategists put it, “Until the virus data says otherwise, the trading strategies should probably still err (towards safety). Buy gold, short oil”.

LOG IN

Similar

Popular

GBP/USD Is Ready for Reverse Up

GBP/USD is moving inside the ascending channel. Since it’s in the lower part of this channel, the pair should reverse up and continue moving in zig-zag.

Choose your payment system

Be on top of your game

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later