Jan 19 – Gold Trades Sideways, Top Events To Follow
Arslan Butt • 2 min read
Happy Friday, traders. I hope you enjoyed our trading signals yesterday when we cashed nice profits on Gold, DAX and EUR/JPY. Today, we don’t have much on the fundamentals side. Nevertheless, the markets could stay volatile during the New York sessions today because investors like to grab some trades before the weekend.
Economic Events Watch List
Great Britain Pound – GBP
Retail Sales m/m – One of today’s major new events. We can expect good variations in the British Pound. The news is due at 9:30 (GMT) with a forecast of -0.8% vs. 1.1% last month.
The retail sales show the change in the total value of inflation-adjusted sales at the retail level. A positive change represents the growth in the economy, which puts pressure on central banks to hike interest rates.
Canadian Dollar – CAD
Foreign Securities Purchases – The figure is due at 13:30 (GMT). It shows the total value of domestic stocks, bonds, and money-market assets purchased by foreigners during the reported month. The figures are expected to fall to 15.76B this month vs. 20.81B last month, probably due to the December effect.
Manufacturing Sales m/m – The Statistics Canada will release figures along with foreign securities purchases with a forecast of 1.9% vs. -0.4%. The data causes slight fluctuations in the market.
U.S. Dollar – USD
Prelim UoM Consumer Sentiment – The University of Michigan will be releasing the consumer sentiment figures at 15:00 (GMT). The US Consumer Sentiment is expected to be 97, higher than the previous month’s figure of 95.9. It’s likely to underpin the Greenback due to bullish sentiments.
Gold – XAU/USD- Bullish Dragon On Smaller Timeframe
The yellow metal Gold continues to trade choppily, in the narrow trading range of $1,326 – $1,333. On the smaller time frame (30 – Min), Gold has formed a harmonic pattern called a bullish dragon. The pattern has completed its C to D wave at $1,330 showing that selling sentiments are getting weaker.
Gold – 30 – Min Chart
The technical indicators are lining up for the price action. Gold is expected to breakout of the range during the US session. The RSI and Stochastics are in a selling zone, but progressively heading north. We also need to wait and see a bullish crossover here.
Gold – XAU/USD – Trading Levels
S1: 1,319 R1: 1,331
S2: 1,323 R2: 1,333
S3: 1,325 R3: 1,337
Key Trading Level: $1,328
Gold / XAUUSD – Trading Idea
The idea is to trade the range by selling at $1,330 with a target of $1,329 and buying at $1,327 with stops of 20/30 pips. The break above $1,332 may give us an opportunity to go long until $1,337 and $1,340. Good luck fellas and have an awesome weekend.