$XAUUSD - Gold must test the lower edge of the channel
Hi guys! 👋🏻
🔔 The stimulus bill proposed by President Joe Biden’s administration is getting closer and is set to be finalized next week according to the New York Times, Gold continues the downtrend. The bill is set to increase the inflation as planned by the FOMC, however as the bill acceptance gets closer, Gold which is traditionally an inflation hedge, loses its positions against the US Dollar.
🔔 More investors are looking towards Silver nowadays. Worlds largest asset management firm BlackRock sold SPDR Gold Shares worth $2.7 million, $471 million worth of GLD ETF, and purchased 1.18 millions of SLV (iShares Silver Trust) and $27 million worth of SLV ETF. Still the Gold share of BlackRock’s total assets remains larger than Silver-backed assets, such a switch could signal the consolidation of Gold price and an uptrend continuation of Silver.
🔔 From the technical point of view, XAU/USD remains bearish. The 4H chart of XAU/USD highlights the downtrend channel and support and resistance zone of the pair.
🔔 While RSI and MACD signal the retrace of Gold, I don't think that in this state, Gold will climb higher than $1790
🔔 The best price action for Gold is to hit the $1700 - $1710 levels, where the lower edge of the downtrend channel is then recover and move upwards.
✊🏻 Good luck with your trades! ✊🏻
If you like the idea hit the 👍🏻 button, follow me for more ideas.
🔔 The stimulus bill proposed by President Joe Biden’s administration is getting closer and is set to be finalized next week according to the New York Times, Gold continues the downtrend. The bill is set to increase the inflation as planned by the FOMC, however as the bill acceptance gets closer, Gold which is traditionally an inflation hedge, loses its positions against the US Dollar.
🔔 More investors are looking towards Silver nowadays. Worlds largest asset management firm BlackRock sold SPDR Gold Shares worth $2.7 million, $471 million worth of GLD ETF, and purchased 1.18 millions of SLV (iShares Silver Trust) and $27 million worth of SLV ETF. Still the Gold share of BlackRock’s total assets remains larger than Silver-backed assets, such a switch could signal the consolidation of Gold price and an uptrend continuation of Silver.
🔔 From the technical point of view, XAU/USD remains bearish. The 4H chart of XAU/USD highlights the downtrend channel and support and resistance zone of the pair.
🔔 While RSI and MACD signal the retrace of Gold, I don't think that in this state, Gold will climb higher than $1790
🔔 The best price action for Gold is to hit the $1700 - $1710 levels, where the lower edge of the downtrend channel is then recover and move upwards.
✊🏻 Good luck with your trades! ✊🏻
If you like the idea hit the 👍🏻 button, follow me for more ideas.
Trade closed: target reached
Nothing is true, everything is permitted.
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🤖 I am one of the 11K TradingView users who trade on BingX - bingx.com/partner/Aziz
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🤖 I am one of the 11K TradingView users who trade on BingX - bingx.com/partner/Aziz
