Gold on upswing fueled by Fed's hawkish stance and fears
Gold's general commentary: Price-action remains well suitable for both Buyers and Sellers of the market where #1,921.80 Resistance rejection, resulted in a decline forming Hourly 1 chart’s Descending Channel immediately. If today’s market closes in Bullish territory, then the Weekly candle (#1W) will end around (# +1.45%) in gains, unable for the second straight week to break firmly #1,900.80 psychological benchmark which is showcasing strong durability. This is a testament of the High Volatility that Hourly 4 chart has been Trading on and how it's practically Neutral within the #1,900.80 - #1,921.80 Neutral Rectangle. A sound strategy since early January’s fractal is to Sell every local High’s and Buy every Low’s which are delivered, but this huge Bullish leap is making me remain very cautious and with strict Risk management and key entry points. What today's session is showcasing is that Gold is working currently as Low risk destination (not affected by the Volatility on all market classes) and that it is slowing achieving the previous balance with DX. It is important to observe the market sentiment in general, if one is interested in Medium to Long-term Gold direction.
Fundamental analysis: Gold was close to the Short-term Support zone, and later on simply capitalized on Three Outside Up Bullish candles. The Medium-term has enough upside potential as the few charts RSI period suggesting #1.900.80 psychological benchmark test or even below, however even though the Medium-term is still haven't found proper Resistance (to form a Top) and is still not limited, I do not expect Technically #1,952.80 benchmark to be achieved very soon. What is worth noting is that the Price-action was rejected more than #3-consecutive occasions near Support zone, so until the #1,900.80 strong Support is not invalidated (and in addition market closing below), Gold's attempts to deliver sustainable Bearish reversal on Gold may not deliver any meaningful result. As I mentioned, correlation with DX is rebalancing with the Index moving more aggressively than Gold does. Candle movements showing all signs that Gold should test #1,952.80 benchmark and delivers the same kind of sentiment as last time what happened after this kind of report (Fed with a hawkish stance which added huge Buying pressure on Gold). I am personally waiting for another #20 - #30 point aggressive takedown, then #1,952.80 benchmark test. Under this assumption, DX can rise by that much without Gold breaking #1,952.80 just like the balance they had on January #8. This is of course very speculative on a largely Volatile Hourly 4 chart setting and Bullish Daily chart, which is on non-stop uptrend since November #4. It is important to note that Gold is soaring aswell (even though Inflation is easing slowly) on recession fears growing, especially affecting Global economy.
Fundamental analysis: Gold was close to the Short-term Support zone, and later on simply capitalized on Three Outside Up Bullish candles. The Medium-term has enough upside potential as the few charts RSI period suggesting #1.900.80 psychological benchmark test or even below, however even though the Medium-term is still haven't found proper Resistance (to form a Top) and is still not limited, I do not expect Technically #1,952.80 benchmark to be achieved very soon. What is worth noting is that the Price-action was rejected more than #3-consecutive occasions near Support zone, so until the #1,900.80 strong Support is not invalidated (and in addition market closing below), Gold's attempts to deliver sustainable Bearish reversal on Gold may not deliver any meaningful result. As I mentioned, correlation with DX is rebalancing with the Index moving more aggressively than Gold does. Candle movements showing all signs that Gold should test #1,952.80 benchmark and delivers the same kind of sentiment as last time what happened after this kind of report (Fed with a hawkish stance which added huge Buying pressure on Gold). I am personally waiting for another #20 - #30 point aggressive takedown, then #1,952.80 benchmark test. Under this assumption, DX can rise by that much without Gold breaking #1,952.80 just like the balance they had on January #8. This is of course very speculative on a largely Volatile Hourly 4 chart setting and Bullish Daily chart, which is on non-stop uptrend since November #4. It is important to note that Gold is soaring aswell (even though Inflation is easing slowly) on recession fears growing, especially affecting Global economy.
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- Few other un-official channels are not mine, they are copies using my real information (impersonating me and my work / identity) so keep that in mind and beware of those.
