⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

U.S. Weekly Open Report: Trading Plan For Gold

Posted Monday, October 30, 2017 by
Shain Vernier • 2 min read

This week is a big one for currencies and commodity valuations. With Wednesday’s FOMC meeting looming, traders and investors will be watching the USD and gold values closely. The month of October has been a solid one for the greenback and a weak one for bullion.

October’s price action has opened up the trading ranges a bit, giving us an opportunity to grab a few pips. There are several levels in gold that have caught my eye for today’s session. Let’s dig into the technicals.

 

Gold Technical Outlook

December gold futures have put in a monthly double-bottom. Are we going to see a rally in bullion?

GC Daily ChartDecember Gold Futures, Daily Chart

 

A few of the key support and resistance levels:

  • Support(1): Lower Bollinger Band, 1269.5

  • Support(2): Oct. double bottom, 1263.8-1262.8

  • Resistance(1): 38% retracement of current wave, 1280.8

  • Resistance(2): Daily SMA, 1285.6

  • Resistance(3):  Bollinger MP, 1285.9

Overview: Gold has been getting hit regularly over the course of the USD’s late-year rally. For now, we may have an intermediate-term bottom at October’s low of 1262.8. Ultimately, market fundamentals will dictate the value of gold in the near-term. If the FOMC makes a surprise move on Wednesday, we could see a crazy gold market.

In the event that December gold futures post a pronounced rally for the rest of the session, a short scalping strategy from the defined resistance levels with a tight 1:1 R/R is an affordable way to trade this market.

If we see a sell-off from current levels, a long from the 38% retracement of Friday’s range (1271.1) with a stop beneath the 78% retracement of Friday’s range (1266.3) is a valid position trade for a 1:1 R/R payoff.

Stay tuned to FX Leaders for trading ideas and signals for gold, the USD, and a wide variety of asset classes.  

 
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments