The surprising (maybe not so much) move by the Swiss National Bank to abandon the EURCHF floor, in order to front-run the ECB’s announcement, sent shock waves through the financial system. It took only two months to axe the floor, following the gold referendum, after the SNB was so passionate about doing “whatever it takes” to defend the floor.
Price action surged above the 200-day , which was pointed out as a secondary after overtaking the $1,240 key . Psychological resistance will be placed around $1,260, while price action has a chance to challenge the overwhelming downward trend created in March 2014.
Gold could find this challenging, as the focal intersects the downward at $1,272. It also corresponds with price action resistance. If price action is rejected, look for profit taking to take gold down to the 200-day , perhaps the $1,240 level to test support. is leading into an overbought condition, so this level could find consolidation before the next leg up.
However, if gold can over take it, I look for $1,295 to be the next key level of resistance, while $1,300 will act as a whole-number, psychological resistance traders seem to like. Above that, $1,314 per toz. is favorable.
We have now had several bars of strong, above the 20-day average, and the is ticking upwards – supporting the current uptrend.
To make a sports reference, if you cannot master layups there no point practicing three-pointers.
I analyze longer-term charts, and narrow it down for entries on intraday charts. I won't create a position or multi-leg trade on an hour chart.