Kicking-off this morning’s analysis from the daily chart, we can see that price peeked above supply at 1260.1-1243.4 during the course of yesterday’s session. The day ended with the market forming an indecision candle, with a slight edge seen going to the bears. This – coupled with the weekly chart showing some active supply around the 1270.8-1250.3 region (see green arrow) ahead of the major supply area above at 1307.4-1280.0, we feel the yellow metal may tumble from here.
From the H4 chart, freshly painted candle action also reveals some clues as to the possible direction Gold may take today. Have a look at yesterday’s low 1251.0; check out how it stabbed into the top-side of demand seen marked with a green arrow at 1251.1 (likely removing some bids from this area). On top of this, the most recent H4 candle has a very bearish tone after bouncing from the underside of resistance coming in at 1256.2. In the event that this candle closes on or very near its lows, we feel this unit will head lower to shake hands with demand chalked up at 1237.2-1243.9.
We do not usually like to have more than one position open at a time, but seeing as we only have 50% remaining on the USD/CHF long right now with our stop at breakeven, we may look to take a small short position on the close of the current candle with a stop placed at 1257.14.
From the H4 chart, freshly painted candle action also reveals some clues as to the possible direction Gold may take today. Have a look at yesterday’s low 1251.0; check out how it stabbed into the top-side of demand seen marked with a green arrow at 1251.1 (likely removing some bids from this area). On top of this, the most recent H4 candle has a very bearish tone after bouncing from the underside of resistance coming in at 1256.2. In the event that this candle closes on or very near its lows, we feel this unit will head lower to shake hands with demand chalked up at 1237.2-1243.9.
We do not usually like to have more than one position open at a time, but seeing as we only have 50% remaining on the USD/CHF long right now with our stop at breakeven, we may look to take a small short position on the close of the current candle with a stop placed at 1257.14.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.