Forex Price Action – Gold Continues the Squeeze | Oct. 4th
As I talked about in my commentary yesterday, Gold appears to be forming a price action squeeze on the $1790/$1800 level which has been capping the upside since Nov. last year. I mentioned in the prior post I expect some shakeout prior to the breakout and this is exactly how it played out with back to back 2-way outside bars. However, the squeeze continues to happen and the 2nd 2-way bar is smaller also forming a HL (higher low) suggesting the pressure is still on.
Thus, I’m expecting this to continue so watch for a breakout, possibly from the NFP announcement tomorrow, but also expect a similar like shakeout before a potential breakout ensues. After $1802, expect some stops to be tripped but after that, $1826 and $1840 should come into play shortly after so watch for a breakout retest setup.
Global Market Commentary:
Draghi and the ECB took center stage today with the announcement they will buy more bonds and support the EZ. This boosted the Euro which hit a 2 week high vs. the USD.
Oil also did a round-trip $4 move reversing all the losses yesterday which is strange considering the tension in the middle east have increased since yesterday.
The Dow gained 80pts on the day and Gold also rallied about $13 closing at $1793.
The key thing on investors minds will be the NFP announcement tomorrow so stay sharp.
Upcoming Economic Announcements:
|AUD AiG Performance of Construction Index||19.30EST|
|JPY Bank of Japan Rate Decision|
|CHF KOF Institute October Economic Forecast||04.00EST|
|EUR German Factory Orders n.s.a. (YoY)||06.00EST|
|CAD Unemployment Rate||08.30EST|
|USD Change in Nonfarm Payrolls||08.30EST|
Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.
Want to Learn Price Action Strategies for Trading Forex?
Sign Up for our Monthly Newsletter and Get our FREE E-Book