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Forex Range Trading Gold (XAUUSD). Silver (XAGUSD) in New Bear Run? US NFPs in Focus.

Forex Range Trading Gold (XAUUSD). Silver (XAGUSD) in New Bear Run? US NFPs in Focus.


In today’s GCI Market Outlook, let’s take a look at Forex Trading on USDCAD, USDCHF, and Silver (XAGUSD), and Gold (XAUUSD).

Price action on gold rose based on worse-than-expected US employment figures.

Gold is seen as a safe-haven investment when investors feel USD may be devalued as the traditional safe haven JPY is now out of the picture.

From the technical side, we may be seeing gold as a range trading opportunity now as we see price action moving sideways.

You will note the reversal in each direction was accurately predicted by the stochastic oscillator.

Some range traders also use other indicators like Bollinger Bands and you can see how price action intersects the upper and lower bands then reverses.

Last time we spotted this double top on silver and price action did in fact break the neckline.

We see a pullback to the upside but this may just be temporary as we see price action forming a channel and the stochastic oscillator is overbought and turning over.

Speaking of safe havens, we finally see some strength in CHF this month and we will looking for some opportunities.

For example, on USDCHF, we see the stochastic oscillator very oversold so we may want to wait for more bearish confirmation.

If we add Fibonacci retracements, we see that price broke support at the 23.6% level and is now at the 38.2% level.

If we break below, the 50% level is our next target.

Regardless, traders and investors will be watching tomorrow’s Non-Farm Employment Change for clues as to the next US Fed decision which will affect every currency and commodity.

Canadian Employment figures are due at the same time as the US and this almost always gives us some opportunities as USDCAD looks like it is a range trading mood as well.

That’s all for now.

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