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The Gold ascending upside momentum drove it to be near $1200

Discussion in 'Current Market Sentiments' started by fx-recommends, Feb 8, 2016.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    XAUUSD Daily 08-02-2016 07-31-59 م.jpg

    Jan US Labor report could give the Greenback short-lived rebound across the broad but it could not change the current market sentiment which is still dominated by the Chinese economic slowdown and financial turmoil which hit the markets this year with retreating of the oil prices.

    After its meeting on Jan. 27, FOMC said that it is assessing currently the global economic slowdown and the financial development implications for the labor market, the inflation, and for the balance of risks to the outlook.

    But Fed's vice president Stanley Fischer came last week to dampen the interest rate outlook saying that the Fed's next step is still unclear, as it is too difficult to gauge the impact on the U.S. economy from recent turmoil in financial markets and uncertainty over China.

    It looks to the markets meanwhile that this waiting and see stance of the Fed can be prolonged behind the first quarter of this year which is watching harsh winter like what has happened in 2014 and 2015 and caused GDP annual contraction.

    The US economy could get over the bad winter in the last 2 year but this time it is looking harder, after actual GDP declaration in US led it to grow by only 0.7% in Q4, after growth by 2% following expansion by 3.9% in the second quarter of last year.

    The gold was one of the most gainers from this sentiment to easily resume its rising surpassing $1163 which stopped it last Friday to cause forming only a new higher low at $1145.30 following the release of US Jan labor report which came mixed showing lower unemployment rate at 4.9% but with adding of only 151k of jobs out of the farming sector, while the market was waiting for 195k.

    The gold could have another positive sign by containing its full falling from $1191.58 to $1046.08.

    The Gold has reached this high upside momentum by getting over its daily SMA200 with crossing $1130 last week.

    The Gold has started gathering momentum by surpassing its daily SMA100 which came accompanied with breaking its previous resistance at $1112 which capped it on last Nov. 4.

    $1071 could also help the gold previously to bounce up again above its daily SMA50 forming a floor above $1058 which drove the gold to start being above its daily Parabolic SAR (step 0.02, maximum 0.2) for 26 consecutive days reading today $1134.45.

    XAUUSD daily RSI-14 is referring now to existence in its overbought region above 70 reading now 80.409 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in its overbought area above 80 reading 94.270 and also its signal line which is reading now 94.371.

    Important levels: Daily SMA50 @ $1090.21, Daily SMA100 @ $1108.44 and Daily SMA200 @ $1130.49


    S1: $1145.30
    S2: $1108.26
    S3: $1071.22
    R1: $1205.63
    R2: $1232.30
    R3: $1245.90

    Have a good day

    Kind Regards

    Global Market Strategist
    Walid Salah El Din
    Mob: +20 12 2465 9143
    E-Mail: mail@fx-recommends.com

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