Potential buy trade may be seen on Gold today...

Beginning this morning’s analysis with a look at the weekly timeframe shows that even though price was able to penetrate the Quasimodo support level at 1074.6, buying pressure drove price back above this level, thus suggesting bid strength for the time being. This momentum can be clearly seen on the daily timeframe, with price rallying from just above the swap support barrier coming in at 1063.4. As long as the buyers can remain dominant above the weekly hurdle 1074.6, there’s little reason (technically) not to see a rally north up to the swap supply drawn from 1098.6-1108.6.

Turning our attention to the H4 timeframe, we can see that this recent surge in buying aggressively took out supply at 1083.2-1078.4, reaching highs of 1087.3 on the day. Consequent to this, the path north appears clear up to resistance seen at 1095.6 (lurking just below the aforementioned daily swap area). For this reason, our plan of attack today will consist of waiting to see if price can retest and hold above 1074.6 (which is also H4 demand at 1069.4-1074.5). If price does indeed hit this H4 demand, depending on what news is due at that time, we’d have no hesitation to enter long at market here.

Levels to watch/live orders:

• Buys: 1069.4-1074.5 (Stop loss: 1068.2).
• Sells: Flat (Stop loss: N/A).