Daily Market Review & Financial Analysis

Gold Falls as Trade Deal Hype Builds

January 17, 2020

U.S. Stock Market

Pivot : 3,215.00 Last : 3,316.81

Review:

U.S. indices closed higher on Thursday, driven by gains in the Technology, Industrials and Financials sectors. The Dow Jones Industrial Average gained 0.92% to hit a new all-time high, while the S&P 500 added 0.84%, and the NASDAQ Composite index climbed 1.06%.

Technical comment:

The S&P RSI is bullish and calls for further upside with the index remaining in a bullish trend channel (researched by Trading Central).

Preference scenario:

Long positions above 3,215 with targets at 3,376 and 3,450 in extension.

Alternative scenario:

Below 3,215, look for further downside with 3,154 and 3,068 as targets.

Resistance 3,376.00 3,450.00 3,515.00
Support 3,215.00 3,154.00 3,068.00

Canadian Dollar (CAD)

Pivot : 1.3110 Last : 1.3065

Review:

The USD/CAD rose 0.07% to C$1.305, although gains were kept in a check as an uptick in Oil prices supported the loonie.

Technical comment:

Upward potential is likely to be limited by the resistance at 1.3110.

Preference scenario:

Short positions below 1.3110 with targets at 1.2950 and 1.2890 in extension.

Alternative scenario:

Above 1.3110, look for further upside with 1.3200 and 1.3260 as targets.

Resistance 1.3110 1.3200 1.3260
Support 1.2950 1.2890 1.2800

Gold

Pivot : 1,530.00 Last : 1,556.82

Review:

As the hype around the U.S.-China deal builds, those who bet against it will have to rethink their strategies. Gold prices fell on Thursday as the conclusion of the phase one agreement prompted safe-haven buyers to reconsider their two-year bets against the deal. Gold futures for February delivery on New York’s COMEX settled down $3.10, or 0.2%, at $1,549 per ounce. Spot Gold was down $4.27, or 0.3%, at $1,551.67.

Technical comment:

The RSI is above its neutrality area at 50.

Preference scenario:

Long positions above 1,530 with targets at 1,575 and 1,610 in extension.

Alternative scenario:

Below 1,530, look for further downside with 1,500 and 1,475 as targets.

Resistance 1,575.00 1,610.00 1,630.00
Support 1,530.00 1,500.00 1,475.00

Crude Oil

Pivot : 60.80 Last : 58.08

Review:

Oil prices were steady on Friday as investors braced for data expected to show China's economic growth last year slid to its slowest pace in 29 years. Nevertheless, most traders are holding on to gains for now after Washington and Beijing inked a long-awaited trade deal. Crude (CLc1) was up 6 cents at $58.58 a barrel, having risen more than 1% in the previous session.

Technical comment:

The RSI is bearish and calls for further downside (researched by Trading Central).

Preference scenario:

Short positions below 60.80 with targets at 56.40 and 54.80 in extension.

Alternative scenario:

Above 60.80, look for further upside with 62.75 and 64.20 as targets.

Resistance 60.80 62.75 64.20
Support 56.40 54.80 53.00

Euro (EUR)

Pivot : 1.1065 Last : 1.1148

Review:

The EUR/USD fell 0.12% to $1.114 as in-line inflation data from Germany did little to ease worries about the slow pace of growth in the eurozone's largest economy.

Technical comment:

The RSI shows upside momentum (researched by Trading Central).

Preference scenario:

Long positions above 1.1065 with targets at 1.1240 and 1.1285 in extension.

Alternative scenario:

Below 1.1065, look for further downside with 1.0980 and 1.0880 as targets.

Resistance 1.1240 1.1285 1.1370
Support 1.1065 1.0980 1.0880

British Pound (GBP)

Pivot : 1.3275 Last : 1.3006

Review:

The GBP/USD traded flat on Friday to close at 1.3006.

Technical comment:

The RSI shows downside momentum (researched by Trading Central).

Preference scenario:

Short positions below 1.3275 with targets at 1.2900 and 1.2760 in extension.

Alternative scenario:

Above 1.3275, look for further upside with 1.3420 and 1.3515 as targets.

Resistance 1.3275 1.3420 1.3515
Support 1.2900 1.2760 1.2600

Disclaimer: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading advice. UFX provides Trading Central chart analysis to support clients in their trades, which should be independently evaluated. Past performance is not a reliable indicator of future results. UFX cannot be held liable for any information provided by Trading Central. UFX makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of UFX, a third party or otherwise.