Action has picked up considerably in the forex, futures, and equities markets since the holidays.  Next week will mark the first full trading slate of 2018, so be ready for higher levels of participation and enhanced volatility.

For a Friday session, it has been an active one on the news front. Reports facing U.S. unemployment and speeches from FOMC members have taken center stage. One surprise was the Baker Hughes U.S. Oil Rig Count, which came in at 742 down from last week’s 747. The number gave a monetary boost to WTI crude.

The economic calendar for the weekend is relatively bare. In my view, there are two events to watch ahead of the Sunday open:

Country                    Event

U.S.                           CFTC Gold NC net positions

China                        Foreign Exchange Reserves (MoM, Dec.)

In addition, the Australia AiG Performance of Construction Index (Dec.) will be released shortly after the open. If you are engaged in the AUD, be sure to manage your position wisely ahead of this report.

Gold Technical Outlook

Gold is showing explosive strength to the bull, resuming the action of the latter stages of 2017. The past four weeks have produced rapid growth in pricing, similar to that of last Spring’s bull run.

The weekly time frame gives us a comprehensive look at 2017’s gold market. The losses sustained during the post-U.S. Presidential election period of 2016 were regained over the course of 2017. Given the current strength in gold valuations, two important topside resistance levels are coming into view:

• Resistance(1): 78% Retracement Current Wave, 1337.8
• Resistance(2): Key Psyche Level, 1350.0
• Resistance(3): 2017’s High, 1365.8

It is a bit of a head scratcher to observe such consistent strength in the U.S. indices and gold at the same time. If risk is on, shouldn’t safe-havens struggle? Can both be dominated by bulls simultaneously? For now, the answer is a resounding yes.

Overview

I hope that this week has been a positive one for your trading account. The holiday season can pose many challenges to active traders, featuring long periods of inactivity. Rest assured, most players will be back for next week’s trade and opportunity will be afoot. Remember, next week is always the best week!