FOREXCOM:XAUUSD strengthens and tests the local high but fails to reach the key resistance at 2050. A strong consolidation above the 2030 level and subsequent momentum is forming.
On D1 we see the potential that the market is aiming for. On the background of weakening TVC:DXY , on the gold market bulls form a strong support area below 2030 after which within the framework of realization of the accumulated potential the market strengthens, forming a bullish impulse. For us at the moment the area of 2034 and 0.382 fibo plays an important role. As the pre-breakout consolidation is formed in relation to the resistance, and after the false breakout of 2040 the price does not fall, but breaks the resistance, it seems that with a positive fundamental background the market may continue its growth.
But before the growth the price may finally test the support. As part of the realization, the price may reach the area of 2050 or even 2060. Closing of today's daily session will determine for us the medium-term potential for the next week.
Resistance levels: 2047.5, 2050. 2062 Support levels: 2038, 2030, 2025
It seems that the market is getting ready to test the resistance. A pullback within the range may follow. Price return to resistance will prepare the market for further growth.
Regards R. Linda!
Comment
⋅
On the low timeframe, a sharp drop. The drop occurred after the words of William (Fed).
Earlier I said that the market reaction to Powell's words is pure market manipulation by the Fed.
It feels like the Fed and all of its members are not seeing or communicating with each other. The head says one thing and the reps say something else entirely.
I recently said that 1-2 days after Powell's words, the market may stabilize. Once it stabilizes, we will be able to see the medium-term outlook quite clearly.
@RLinda, Let's wait for 2047 Levels and usd economic event also
RLinda
⋅
@ahmedkhakwani91, There is a chance that Friday will be relatively quiet and more predictable as there is nothing of importance today apart from the SP500 news.
ahmedkhakwani91
⋅
@RLinda, yes of course Fed Chair Powell said rates will be cut in 2024. I have question if rate is decreased in January Gold price will go up ?
RLinda
⋅
@ahmedkhakwani91, Lower rates will weaken the dollar a bit. And it will affect the forex market. Gold will strengthen as well as the national currencies of countries
ahmedkhakwani91
⋅
@RLinda, Swiss France is stronger and kuwaitimore dinar are strong among all currencies
RLinda
⋅
@ahmedkhakwani91, Unfortunately, I don't use the Kuwaiti dinar in my trading