XAU/USD PRE ECONOMIC RELEASE
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As we all know, we are waiting for economic releases tomorrow and this leaves us in an interesting position with gold. We have been relatively flat, moving from local highs and lows in the consolidation zone. The release will shift things up for sure when it comes to the yellow metal.
My analysis is simple, I see price is losing momentum to the top side via 4H chart, urging me to take a short position during london session (which i might actually take). I will ignore the urge to hold a long-term short position because i want to ride the REACTION of the news tomorrow, not anticipate.
I have 2 levels to pay attention to, the inflection point where gold might choose to chase a bit higher in gains, and I also have a target for a short position. It is going to be really important to decide on taking the short position before London session because as we get closer to NY session, it will get a lot more choppy within the markets until about an hour after the release.
My overall bias for tonight is short as we are running out of steam moving to the top side and we are also in a liquidity zone (recent resistance block) where we can see gold short back down to the prev. low; however, i am not calling a move until after i see the development of the news release.
From my interpretation of the US economy, the rates have been lowering slowly and steadily indicating positive performance for the dollar, which can indicate a drop for gold as investors become more optomistic about the dollar and US market as a whole.
I will post another idea tomorrow after some much needed research on the US market and gold.
Thanks for reading and remember, chase your dreams because you only get one life in this body.
As we all know, we are waiting for economic releases tomorrow and this leaves us in an interesting position with gold. We have been relatively flat, moving from local highs and lows in the consolidation zone. The release will shift things up for sure when it comes to the yellow metal.
My analysis is simple, I see price is losing momentum to the top side via 4H chart, urging me to take a short position during london session (which i might actually take). I will ignore the urge to hold a long-term short position because i want to ride the REACTION of the news tomorrow, not anticipate.
I have 2 levels to pay attention to, the inflection point where gold might choose to chase a bit higher in gains, and I also have a target for a short position. It is going to be really important to decide on taking the short position before London session because as we get closer to NY session, it will get a lot more choppy within the markets until about an hour after the release.
My overall bias for tonight is short as we are running out of steam moving to the top side and we are also in a liquidity zone (recent resistance block) where we can see gold short back down to the prev. low; however, i am not calling a move until after i see the development of the news release.
From my interpretation of the US economy, the rates have been lowering slowly and steadily indicating positive performance for the dollar, which can indicate a drop for gold as investors become more optomistic about the dollar and US market as a whole.
I will post another idea tomorrow after some much needed research on the US market and gold.
Thanks for reading and remember, chase your dreams because you only get one life in this body.
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