Gold leans more to the Bullish side / Yields near Higher Low

Gold's general commentary: Gold didn't capitalized throughout late U.S. session candlestick pattern on Daily chart as spiral downtrend on U.S. Bond Yields (# -1.27% notably) still adding huge Buying pressure on Gold regarding Hourly scale. DX is rising aswell on a firm green engulfing candle, regarding Hourly 4 chart (# +0.10%), as the pre-Fed candles arrive (rate will remain unchanged most likely), which were positive wise for DX on more than #3 occasions. Bond Yields are Trading below the Resistance and continuation on current variance might spike upwards Gold’s Short-term as such pace should practice strong Buying pressure on Gold. As discussed, this is the consolidation process after an Overbought run, limited to #1,778.80 configuration (strong Support). I doubt the further upswing above #1,812.80 configuration, since subsequently both DX and Bond Yields (main markers at the moment) are Trading on mixed values where trend can change on Hourly basis. On the current configuration and both correlating assets on the eminent uptrend (DX) and downtrend (Bond Yields), aggressive uptrend spike and Buying continuation should come as no Technical surprise. Important fractal took place on August #2020,, where Price-action broken the Bollinger bands on (August #7, #13, #26) and always retraced as personally, my estimations show that Price-action should continue Trading within the Hourly 4 Bollinger Bands. Also what is worth noting is that Hourly 1 chart could print the Double Top rejection, both giving mixed signals on Gold's Short-term trend. It should be no surprise that Gold is Trading around its #1,793.80 Resistance zone (with Bond Yields invalidating the uptrend) ahead of the upcoming U.S. session opening Bell, since post Fed candles might have Bearish gradient (last #3 Fed reports, on the aftermath, Volatility kicks in with Bearish gradient, which makes #3 out of #3 times). All previous Bullish developments didn’t invalidated Gold’s underlying Medium-term Bearish trend. If the Higher High zone breaks however, I will be looking at the very real possibility of a new #1,823.80 test, and by my estimation, chances are slim for that outlook to develop. Gold had certain upswing, but it always respects the underlying trend (which is Bearish, Selling back the Top's for more than #14 sessions) - In other words; or choose Scalping range, or engage Medium-term Position (which I will do). I expect more Bullish Price-action as U.S. opening Bell approaches, and #1,812.80 (upside extension for now) within #1 session, then aggressive downswing towards #1,778.80 Support zone on the Fed decision aftermath.


Technical analysis: The Hourly 4 chart's Support should hold the Price-action as it is still acting as an Lower High trendline, representing #1-Week Support. I don’t think that Support will be broken without serious cause. Historically, every Lower High test, as mentioned previously rejected the Price-action as movement always press the bias towards the Weekly High's. I foreseen that there will be E.U. opening Buying pressure on Gold and that’s why I based my calculations on final line of the defence near #1,778.80 Support.. Regarding the Fundamental part, situation is certainly Bullish since the U.S. reports Higher readings than the forecast, Bond Yields picked up the Selling sentiment (which is again Bullish for Gold). If it wasn't for the parallel pressure on the Bond Yields this week, I estimate Gold would have been near #1,808.80 - #1,812.80 by now at least. As I mentioned this is my Lower High projection (the Weekly chart remains an solid Descending Channel) with the extension going as far as the #1,812.80 Resistance. If one decides to Trade current fractal, Buying now with #6 point Stop-loss is the optimal Trade to take, as #1,788.80 Support break can extent the Price-action towards #1,778.80 Hourly 1 chart's Support cluster.