Technical Analyst, Saxo Bank Group
Gold spot XAUUSD touched key support at 1,80 yesterday and formed a Bullish Engulfing candle. A Bullish Engulfing candle is when the price opened lower than previous day’s close and closed higher than previous day’s open.
A Bullish engulfing candle shows that Buyers taking control from Sellers and an indication of a bottom and reversal i.e. XAUUSD is set for a rebound. A rebound that could take Gold to around 1,780 and the falling trend line.
For XAUUSD to continue the down trend a close below 1,680 is needed.
Silver spot XAGUSD is finding support at 0.618 retracement and the key support at around 18.35. See weekly chart.
On daily chart three times have XAGUSD tested the support level and could be ready for a correction. If XAGUSD breaks above 18.45 it could bounce to the 0.382 retracement at 21.22. If XAGUSD takes out the support at 18.35 with a daily close XAGUSD
The Gold/Silver XAUXAG ratio is still in an uptrend weekly chart the price is hugging the upper trend line in a rising channel. (weekly chart)
A correction should be seen but XAUXAG must break below 89.55 for that scenario to unfold. XAUXAG is trading in a rising channel (or is it a wide rising wedge – not yet confirmed) and could test the lower rising trendline. That will be tested if XAUXAG breaks below 89.55.
If XAUXAG breaks below the trendline minor support at the 0.618 retracement at 86.90 but XAUXAG could drop to 85.00 or even to 82.25.
If instead XAUXAG moves higher above 92.20 we could see a new higher above 93.67.
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)