Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Gold Drops Ahead of ECB Meeting - 10 March 2016

By Alp Kocak
Alp Kocak has been trading Forex since 2003. He writes technical analysis based on Japanese candlesticks and Ichimoku Kinko Hyo.

Gold prices fell $8.42 an ounce yesterday, down for the second straight session to $1252.85, as expectations of further easing from the European Central Bank prompted some investors to take profits. The precious metal touched $1279.76 last week, its highest since Feb. 3, 2015, supported by growing perception that the U.S. Federal Reserve will not raise interest rates at its March 15-16 policy meeting. Technical selling was also behind gold's 0.64% drop on Wednesday. Not surprisingly, the bulls' failure to maintain prices above the 1262/0 area put some extra pressure on the market.

The XAU/USD pair is trading at 1247.75, lower than the opening price of 1252.57 and it appears that the support at the 1245 level will be tested. From a technical point of view, the medium-term directional bias remains bullish, with the market trading above the weekly and daily Ichimoku clouds. However, if the ECB meets expectations (and drive stocks up), the euro should weaken and the greenback should strengthen.

The XAU/USD pair

In that case, the market may fall through 1245 and retreat to the 1238/5 area. If this support is broken, then the 1225 level will probably be the next stop. Closing below 1225 would suggest that the bears are getting ready to tackle 1220 (or even 1213). To the upside, the initial resistance stands in the 1260-1261.72, where the Kijun-Sen (twenty six-period moving average, green line) sits on the 4-hour chart. The bulls will have to push prices beyond that so that they can test 1266. If prices climb back above 1266, it is likely that the market will proceed to 1280/79.

4 Hours Chart

Alp Kocak
About Alp Kocak
Alp Kocak has been trading Forex since 2003. He writes technical analysis based on Japanese candlesticks and Ichimoku Kinko Hyo.
 

Most Visited Forex Broker Reviews