As I said this week there would be a slow downtrend and yesterday I said that it will come near 1240 before going up through the ECB Base Rate changes.
We have a resistance Break of 1250 and next target would be 1269.
Unemployment Rate and Nonfarm Payrolls have expectations for pushing the gold price higher.
If you follow the US economic values after last Nonfarm Payrolls then you can see a disappointing developement. For example the ADP Nonfarm Employment Change.
Newbie here, hence is it safe to place a buy position at 1250?
ali.se.18
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I would wait for close of the next 1H chart. 45 minutes to go. If there are slow movements around 1250 then it would consider a buy.
MrZiko
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I see. tq
ali.se.18
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You are welcome :)
MrZiko
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sorry to ask again, but how did the ECB Rate Cuts affected the price? and how do you predict that it 1269 to be its resistance?
ali.se.18
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The deposit rate of interest is now negative. That means that the banks who deposit their money in the ECB have to get rid of the money by giving loans or buying government bonds or invest in other financial devices which must be something different than forex and in this case it would be commodities. If they dont do that their money would decrease by the negative deposit rate. Therefore the gold price got pushed up by moving the interest of banks to alternative financial devices.
MrZiko
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A brief and yet easy to understand explanation. Still new to forex here and determined to focus only on the XAUUSD pair. Currently relying on technical indicator alone. Is it possible to excel in this pair using technical indicator alone or do I need to do a lot of fundamental analysis as well?
ali.se.18
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I think XAUUSD is one of the pairs which respects the technical flow of the market more than the casual Forex pairs. This is what I personally noticed. But in lots of cases the fundamental anylsis helps more for short term developement and this is for leverage traders more important than for people who want to invest long term.