Golds time to shine
Updated
Trade set up - Waiting for a pullback in the pair and confirmation of support before entering long, as this enables us to manage risk in a better way. However, aggressive traders can look at longs at the current market price. Stops set at $1235 and a take profit at $1262.
Why we like this trade - We've had gold on 'high-watch' for some time now and given the recent break of $1238, and the 38.2 Fib, our bias on the pair is bullish. As interest rate expectations are being priced out of the dollar, we see the pairs inverse relationship playing out. Furthermore, the global economic outlook looks to be slowing down, Indices are off to shaky start, and all of this plays into the feedback loop of a strong XAUUSD. This week's economic data will play a pivotal role in how this pair trades as US CPI and Retail Sales are released - softer numbers here could start signalling a sell-off in USD and capital flows into safe-haven assets.
Technically, the pair is currently in the upper end of a bullish channel with momentum indicators signalling exhaustion in the current price, hence a pullback and re-entry.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Why we like this trade - We've had gold on 'high-watch' for some time now and given the recent break of $1238, and the 38.2 Fib, our bias on the pair is bullish. As interest rate expectations are being priced out of the dollar, we see the pairs inverse relationship playing out. Furthermore, the global economic outlook looks to be slowing down, Indices are off to shaky start, and all of this plays into the feedback loop of a strong XAUUSD. This week's economic data will play a pivotal role in how this pair trades as US CPI and Retail Sales are released - softer numbers here could start signalling a sell-off in USD and capital flows into safe-haven assets.
Technically, the pair is currently in the upper end of a bullish channel with momentum indicators signalling exhaustion in the current price, hence a pullback and re-entry.
Disclaimer.
Trading leveraged products carries a high level of risk and may result in you losing substantially more than your initial investment. Pepperstone Group Limited is licensed and regulated by the Australian Securities and Investments Commission (AFSL 414530). Pepperstone Limited is authorised and regulated by the United Kingdom Financial Conduct Authority (FRN 684312). This information not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation
Trade active
Pullback and support confirmed - entered trade long at $1243Trade closed: stop reached
Note
Interesting to note - a daily close below 1235 would have kept this trade active and into a long profit.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
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