The daily gold chart has charted a series of higher troughs followed by higher peaks (green zig-zags). We regard this as an uptrend. The precious metal may look to chart its next daily impulse up (daily +ve impulse scenario). We consider the hourly chart. Following the BoJ's announcement that it will defend the 50bps level, up from the 25bps level, the precious metal's trend-following EMAs and the momentum based stochastic indicator are in bullish mode. The stochastic is currently above 80 (red rectangle). If it can maintain this level, a positive underlying momentum will be present. XAUUSD needs this for the daily +ve impulse scenario to unfold.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.