Daily Market Report – Gold Facing Tough Resistance October 13, 2017

By Mexgroup.com

Gold Struggling To Stay Higher

The yellow metal increased in the morning and tries to stay in the green territory. Price is pressuring an important horizontal resistance and seems determined to reach the 1297 yesterday’s high. Price increase as the USDX is still under selling pressure on the short term. The Gold has taken advantage of the weak dollar and has managed to recover after the last corrective phase.

Gold should reach the $1300 per ounce if the United States data will disappoint in the afternoon. You should be careful because we may have some volatility in the US session as the United States is to release the CPI, Core CPI, Core Retail Sales and the Retail Sales data.

The greenback needs a bullish spark from the US economy to be able to increase again, the yellow metal will slip lower if the USDX will start a bullish momentum.

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Gold has managed to climb much above the warning line (WL1) of the ascending pitchfork and now if challenging the 23.6% retracement level. A larger rebound will be confirmed only after a valid breakout above the warning line (WL1) of the major descending pitchfork, while a rejection from here and a failure to reach the mentioned dynamic resistance will send the rate tumbling.

The current rebound is natural after the false breakdown below the 61.8% retracement level and below the sliding parallel line (SL).

EUR/GBP Is This A False Breakout?

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Price increased a little today and tries to recover after the yesterday’s minor drop. EUR/USD is retesting the median line (ml) of the ascending pitchfork, a false breakout above this obstacle will send the rate down again. Technically, the pair was somehow expected to climb to retest the 1.1910 resistance and the upper median line (uml) of the minor descending pitchfork. Could still develop a Head and Shoulders pattern if will stay below the mentioned resistance levels.

GBP/USD At New Highs

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The GBP/USD increased and climbed above the 1.3289 yesterday’s high and is expected to reach the up sloping red line very soon. Technically is still expected to climb much higher as long is trading within the ascending channel between the 150% and the 250% Fibonacci lines. Only a valid breakdown below the 250% Fibonacci line will announce a broader drop.

By Olimpiu Tuns – Market Analyst

Profil1

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com,  countingpips.com, forexalchemy.com, etc.

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Trading, in general, is very risky and is not suited for everyone. There is always a chance of losing some or all of your initial investment/deposit, so do not invest money you can’t afford to lose. You are strongly advised to carry out your independent research before making any trading decisions.  All the analysis, market reports posted on this site are only educational and do not constitute an investment advice or recommendation to open or close positions on international financial markets. The author is not responsible for any loss of profit or damage which may arise from transactions made based on any information on this website.

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