A Potential Buy Entry In Gold – ECB In The Spotlight - Forex News by FX Leaders

A Potential Buy Entry In Gold – ECB In The Spotlight

Posted Thursday, September 7, 2017 by
Arslan Butt • 2 min read

Good morning forex friends, the forex trading signal for gold did another exceptional job. Today, investor's focus will remain on the ECB. Though the ECB isn't expected to change rates, we never know if they will surprise us, just like the BOC did.

Current Scenario

Gold traded exactly as we forecasted in "Gold hits 75 Pips Take Profit – Are you Ready for the Next Trade?" Now, the metal is consolidating in a narrow range of $1326 – $1343.

The technical view of gold is now slightly confusing, as most of the traders are absorbing shocks from the Bank of Canada. Anyways, it worked out really well for us. Remember, the forex trading signals suggested in "Trade Setups In Canadian Crosses – BOC In Focus" both of them closed at TP. I will discuss it more detail in my next update.

Today we have ECB on the table and investor's focus has shifted to their rates decision, coming out at 11:45 (GMT) & ECB Press Conference at 12:30 (GMT).

Key Technical Drivers

We can see on the 2- hours chart, gold already dropped to place a low at $1331. Remember we discussed the bullish channel, Gold is now in the middle of it. It has a room for both, bullish and bearish trades.

Gold - 2- Hour Chart - Bullish Channel Gold – 2- Hour Chart – Bullish Channel

The leading indicators, RSI and Stochastics are oversold enough to give us a pullback in the Gold. However, the bearish moves are followed by a bearish marubozu candlestick, which demonstrates the strong selling intention of traders. Check out FX Leaders candlesticks strategy to enhance your profitability.

The lagging indicator, 50- periods EMA is supporting the Gold at $1330. The cross below this will add further selling until $1326 and that's where I'm seeing a potential for buying.

Gold Trade Plan

For now, I'm just going to wait for the market to retest $1326 to take a buy entry with a stop below $1324/22. On the flip side, I may take a bearish entry below $1343 with a stop above $1347. Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of