XAUUSD Gold : A short-term zoom in for today! 5.5
Let's cut right to the point.
Since yesterday's FED meeting Gold rallied by around $40, coming from lows of mid 1850's.
Today we have a Jobless claims report which is also expected to be impactful.
So let's break down the two aspects of analysis:
1) Fundamental - Inflation is here to stay, hike news yesterday were already implemented to USD before they came, only bringing USD down and Gold up, also war is getting worse, supply chain disruptions are still ongoing and Gold being a safe-haven and a hedge against all that is in a perfect fundamental position to continue to rally as it did between June 2019 to today with the weekly up-trend.
2) Technical -
1860 support horizontal was held and kept.
Connecting lows show a consistent descending trend-line with a parallels resistance trend-line, creating a form of a channel.
The range of this channel is between 1960 to 1845-50, a recent connecting high trend-line from the top of the channel was broken above, confirming a short-term bullish breakout possibility.
The retest of this short-term breakout is between 1875 to 1885, which may or may not take place any time within the up-trend.
A key level to break on the way to the peak of the channel is 1912-1919.
With a break below the mid 1870's we could be going back to the bottom of the channel at around 1845-60.
Today's Jobless claims and BOE report may push Gold by a few tens of Dollars, be safe and trade smart!
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
Thank you so much for reading! Please like and follow if you found my idea useful :)
I'm here for any questions/comments and promise to respond to each and everyone of you.
Hope this helps!
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
Since yesterday's FED meeting Gold rallied by around $40, coming from lows of mid 1850's.
Today we have a Jobless claims report which is also expected to be impactful.
So let's break down the two aspects of analysis:
1) Fundamental - Inflation is here to stay, hike news yesterday were already implemented to USD before they came, only bringing USD down and Gold up, also war is getting worse, supply chain disruptions are still ongoing and Gold being a safe-haven and a hedge against all that is in a perfect fundamental position to continue to rally as it did between June 2019 to today with the weekly up-trend.
2) Technical -
1860 support horizontal was held and kept.
Connecting lows show a consistent descending trend-line with a parallels resistance trend-line, creating a form of a channel.
The range of this channel is between 1960 to 1845-50, a recent connecting high trend-line from the top of the channel was broken above, confirming a short-term bullish breakout possibility.
The retest of this short-term breakout is between 1875 to 1885, which may or may not take place any time within the up-trend.
A key level to break on the way to the peak of the channel is 1912-1919.
With a break below the mid 1870's we could be going back to the bottom of the channel at around 1845-60.
Today's Jobless claims and BOE report may push Gold by a few tens of Dollars, be safe and trade smart!
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
Thank you so much for reading! Please like and follow if you found my idea useful :)
I'm here for any questions/comments and promise to respond to each and everyone of you.
Hope this helps!
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
Trade closed: stop reached:
Broke below 1840, which is now opening the way to a possible movement towards 1750 at the lowest point
