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Avoid These 3 Rookie Gold Trading Mistakes Now
George Georgoudakis, 2016.08.23 03:43
Could Janet trigger a triangle breakout? As nearly
500 million people in advanced industrialized nations remain mired
under negative interest rates policies –what if any answers do global
central bankers have for the current sluggish growth prospects? Will Fed Chief Janet Yellen have any answers this week? Read more here.
In the meantime, as the gold market lumbers quietly in a tight
range, it may open the door to several trading mistakes. Do any of
these sound familiar?
Trading Mistake #1: Sometimes sheer boredom can trigger you into a trade.
Trading Mistake #2: Trading outside your timeframe.
One of the elements of a successful trading and investing plan is to know your timeframe and stick to it.
Trading Mistake #3: Getting stuck and trading your "opinion."
The markets will tell you where they are going –all you have to do
is watch the charts. The markets –gold or otherwise – are not going to
change direction just because you doubled down on a losing trade. Good
traders listen to the markets – and follow price. Markets don't care
that you "know" gold has to go up right now because of XYZ.
Triangle update: Comex December gold futures remain
stuck in a developing daily triangle. As a reminder, triangles are
most often "continuation" patterns, which means upon a confirmed upside
breakout, gold would resume its previous uptrend. See Figure 1 below.
What you need to know now:
Learn more about Triangles here >> Technical Analysis 101.
What's your trading plan right now?
Technical Targets for EUR/USD by United Overseas Bank (based on the article)
is located above 100 SMA/200 SMA for the bullish market condition: the
price is on ranging within
the following support/resistance
price. United Overseas Bank is expecting for EUR/USD to be continuing with the bullish market condition:
"While stops for s/t bullish view is still intact at 1.1240, the recent
price action is lackluster and the odds for extension to the 1.1430 high
seen on the day of Brexit are not very high. EUR has to clear the
recent 1.1365 peak in an ‘impulsive manner’ before a sustained up-move
can be expected."
Technical Targets for GBP/USD by United Overseas Bank (based on the article)
is above 100 SMA/200 SMA for the bullish market condition: the
price is breaking 1.3185 resistance to above for 1.3209 target to re-enter.
price. United Overseas Bank is expecting for GBP/USD to be continuing with the bullish market condition by 1.3186 resistance to be broken with 1.3255 bullish target:
"GBP touched a low of 1.3034 before rebounding strongly. While short-term
downward momentum has waned with the strong recovery, we still believe
that the current pull-back has scope to extend lower to test the 1.2940
support first. That said, a clear break above last week 1.3186 high
could lead to a quick move towards the key 1.3255 resistance."
AUD/USD Intra-Day Fundamentals: Australia Construction Work and 15 pips price movement
2016-08-24 01:30 GMT | [AUD - Construction Work Done]
if actual > forecast (or previous one) = good for currency (for AUD in our case)
[AUD - Construction Work Done] = Change in the total inflation-adjusted value of construction projects completed.
AUD/USD M5: 15 pips price movement by Australia Construction Work news event
NZD/USD Intra-Day Fundamentals: New Zealand Trade Balance and 18 pips price movement
2016-08-23 22:45 GMT | [NZD - Trade Balance]
if actual > forecast (or previous one) = good for currency (for NZD in our case)
[NZD - Trade Balance] = Difference in value between imported and exported goods during the reported month.
NZD/USD M5: 18 pips price movement by New Zealand Trade Balance news event
USD/CNH Price Action Analysis - rdaily correction to be resumed or the bullish to be re-started (adapted from the article)
Daily price is located above 200 period SMA
and 100 period SMA for the primary bullish with secondary ranging
between Fibo support level at 6.6125 and Fibo resistance level at 6.7166:
If daily price breaks Fibo support level at 6.6125
to below so the local downtrend as the secondary correction will be resumed. If daily price breaks Fibo resistance level at 6.7166 from below to above so the primary bullish trend will be continuing with good possible breakout of the price movement. If not so the price will be on bullish ranging within the levels.
SUMMARY : ranging
Forecast for Q3'16 - levels for Brent Crude Oil
Sergey Golubev, 2016.08.24 17:20
U.S. Commercial Crude Oil Inventories
news event: intra-day bearish breakdown, daily correction
2016-08-24 14:30 GMT | [USD - Crude Oil Inventories]
[USD - Crude Oil Inventories] = Change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
commercial crude oil inventories (excluding those in the Strategic
Petroleum Reserve) increased by 2.5 million barrels from the previous
If the price breaks 51.18 resistance on close daily bar so the primary bullish trend will be continuing.If the price breaks 41.49
support level on close daily bar so the reversal of the price movement
from the primary bullish to the primary bearish market condition will be
started.If not so the price will be on bullish ranging within the levels.
EUR/USD Intra-Day Fundamentals: German Ifo Business Climate and 10 pips price movement
2016-08-25 08:00 GMT | [EUR - German Ifo Business Climate]
if actual > forecast (or previous one) = good for currency (for EUR in our case)
[EUR - German Ifo Business Climate] = Level of a composite index based on surveyed manufacturers, builders, wholesalers, and retailers.
EUR/USD M5: 10 pips price movement by German Ifo Business Climate news event
Intra-Day Fundamentals - EUR/USD and GBP/USD: Durable Goods Orders
2016-08-25 12:30 GMT | [USD - Durable Goods Orders]
if actual > forecast (or previous one) = good for currency (for USD in our case)
[USD - Durable Goods Orders] = Change in the total value of new purchase orders placed with manufacturers for durable goods.
GBP/USD M5: 23 pips range price movement by U.S. Durable Goods Orders news event
EUR/USD M5: 17 pips range price movement by U.S. Durable Goods Orders news event
The price is testing 1.1296 resistance level together with ascending triangle pattern to above.
price. United Overseas Bank is expecting for EUR/USD to be continuing with the ranging bullish market condition within 1.1190/1.1370 range:
"As highlighted yesterday, unless EUR can move and stay above 1.1310/15,
the bullish outlook would shift to neutral. While further EUR strength
would not be surprising further out, the current price action suggests
that this pair has entered a consolidation phase and only a clear break
out of the expected 1.1190/1.1370 sideway trading range would indicate
the start of directional move."