• A merging H4 reversal zone seen between the H4 78.6% Fib support at 1322.8 and the X point of the H4 at 1310.7.
• A supporting daily demand base at 1305.3-1322.8, which sits on top of a weekly at 1307.4-1280.0.
With the US dollar index also recently reacting to a H4 supply seen at 94.96-94.84, this could push the dollar lower today, and by extension, the gold market higher. Ultimately, we’re now looking for price to tag the minor H4 supply area seen marked with a black arrow at 1326.9-1324.9 to take profits and reduce the stop to breakeven. However, with traders likely taking on a cautious stance ahead of Yellen’s speech today, we are going to be watching our position carefully! Should price show signs of topping out before our take-profit area, we will likely move our stop to breakeven and let the market do its thing from the safety net of a breakeven stop. Well done to any of our readers who bought this unit alongside us!
Levels to watch/live orders:
• Buys: 1319.8 LIVE (Stop loss: below the X point of the H4 formation: 1309.1, which is, as you can see, set just beyond the H4 support at 1310.3).
• Sells: Flat (Stop loss: N/A).