The financial markets are going crazy over the war sentiments created by North Korea & the US. The global stocks sustained a major hit, causing gold to soar nearly 350 points. Don't worry if you missed that big trade, I've got another great trade planned for today!
Top Events To Watch Today
Before we begin, let's take a look at the major economic events today.
Japanese Yen- Japanese banks will be closed in observance of Mountain Day. Consequently, we may encounter thin trading volume during the Asian session.
US Dollar - At 12:30 (GMT), the Bureau of Labor Statistics will release the CPI data. It's forecasted to gain by 0.2%, beating the previous figure of 0.0%. For newbies, the consumer prices account for a majority of overall inflation. Inflation is important to currency value because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
At the same time, the Core CPI is also expected to beat the 0.1% figure by 0.2% this month.
FOMC Member Speeches
FOMC Member Kaplan is due to speak at 13:40 (GMT) about economic conditions and monetary policy at an annual continuing education event for accounting professionals, in Arlington. Later, at 15:30 (GMT), FOMC Member Kashkari will speak at the Independent Community Bankers of Minnesota Annual Convention.
Since, the Federal Reserve FOMC members vote on where to set the nation's key interest rates, their public engagements are often used to drop indirect clues regarding future monetary policy.
Gold - XAUUSD- The Safe Haven Asset
I'm not going to talk about why the global markets are extremely volatility these days. I mentioned in detail a couple of times and I assume my readers have a good idea. But, in case you are reading my articles for the very first time, refer to my previous update Forex Signals Brief August 10th for a review. In short, the renewed bullish momentum in gold was initiated due to the geopolitical tensions between North Korea and the United States.
At the moment, safe haven gold is heading north after breaking above the major resistance level of $1270. All the technical indicators are supporting the bullish bias for the pair.
Gold - Daily Chart - Double Top Pattern
On the daily timeframe, I have highlighted the double top levels which are likely to control the bulls near $1296. I hope it stays there, otherwise, we are going to see some new bullish waves in the second half of the month. Gold prices are also holding above 50 - periods moving averages, which signals investors' bullish bias. Seeing as the market is far away from the EMA, can we expect an EMA retest? Personally, I'm expecting it soon.
Gold - XAU/USD - Trading Levels
S1: 1282 R1: 1287
S2: 1277 R2: 1290
S3: 1274 R3: 1295
Gold Trading Plan
Traders, a short term idea is to stay in buying above $1282. The long term plan is to stay in sell below $1296, to target $1270 with a minor stop loss above $1301.
Good luck traders and have a lovely weekend!