Gold- Before CPI and FOMC
Updated
As you know, I'm strongly bearish on gold in the medium term. However, as I explained in previous posts, I expected a recovery after Friday's 1000-pip drop. The big question now is: from which level will gold start falling again?
As I mentioned yesterday, a new leg of correction is probable. At the time of writing, with the price at 2313, it seems we are in the middle of this correction. The 1-hour chart shows buying pressure, and the 2320 local resistance could be broken.
If this resistance is breached, there are numerous resistances to the upside, making it difficult to choose an optimal entry point for a short trade. However, the only zone that makes sense for a swing short trade at this moment is between 2335 and 2350. This zone is a confluence of the Fibonacci golden ratio, the 20 and 50 simple moving averages, and previous horizontal levels.
That being said, I'm currently out of the market, waiting for clarification and a clear selling signal.
Follow the idea, because I will update it during the day!
As I mentioned yesterday, a new leg of correction is probable. At the time of writing, with the price at 2313, it seems we are in the middle of this correction. The 1-hour chart shows buying pressure, and the 2320 local resistance could be broken.
If this resistance is breached, there are numerous resistances to the upside, making it difficult to choose an optimal entry point for a short trade. However, the only zone that makes sense for a swing short trade at this moment is between 2335 and 2350. This zone is a confluence of the Fibonacci golden ratio, the 20 and 50 simple moving averages, and previous horizontal levels.
That being said, I'm currently out of the market, waiting for clarification and a clear selling signal.
Follow the idea, because I will update it during the day!
Note
As explained in my morning commentary, I expect Gold to continue its correction and break above 2320 resistance.The lower boundary of my sell zone was also hit (2335)
At this moment I'm looking to sell rallies around 2340
Note
In my opinion, XauUsd is forming a "Bearish Mat Hold" candlestick pattern on daily chart, and if I'm right, the next daily candle will be a huge red one, similar with Friday's one, which gives us a break under 2285 support and probably a drop to 2250 in the first instanceNote
XauUsd is back under 2320 level which has acted as both support and resistance lately.We can consider the correction over and look downwards under 2300
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