Gold, Gold, Gold......!
Well, we made it to Thursday - Finally got that dollar strength..! Hold steady we have NFP tomorrow - This could make or break the beautiful gold dust, not sure if you've heard the song but great motivation.
However, back to technical and fundamentals of gold (XAU/USD) Key trend-line up from the daily as well connects nicely, we could measure the pattern which I've implemented in, measuring the downward movement we reach the 161.8 Fib retracement which is a nice pull-back area BUT I want you to understand whatever you trade plan indicates to you, for me it's this trend-line up i'd want a daily close below before I can even think of the bears coming into further control, until then I have neutral view on this.
Now, let's look at towards upward movement - I have measured this pattern, we would reach ATH on gold - which doesn't really surprise me considering where we are within the economic cycle, which if you still don't understand what is going on - I advise you to research in depth of economic cycles, various books out there that could extended that knowledge area of yours further, and lastly fundamental view - EURO doesn't like the dollar weakness...! Great articles out there regarding that situation, they've got meeting next week to discuss policies. For EURO 1.1750 key area!
(It wouldn't go directly down or up to those levels, the market does move in waves)
Either direction it goes to - Remember, to me this is still consolidation and support within this pattern drawn (200 EMA something to keep in mind)- It hasn't broken towards up side nor the downside - I am neutral and I wouldn't be surprised if you get fake break outs something to keep in mind and the purple coloured areas drawn, if we still within those levels - still range bound..! Key tip I will give you in this post - Wait for the break out and trade the pull back on the break out indicating if it is a real break out towards direction.
Now... You don't have to take the trade down, which would be counter trend, you could wait for it to decline further and buy the depreciated pull back area and scale into the trade as the price of precious metal increases..Just an idea..!
Enjoy the great momentum the market is giving us all!
Remember: JUST A TRADE IDEA, NOT A RECOMMENDATION.
All the best,
Trade Journal
Well, we made it to Thursday - Finally got that dollar strength..! Hold steady we have NFP tomorrow - This could make or break the beautiful gold dust, not sure if you've heard the song but great motivation.
However, back to technical and fundamentals of gold (XAU/USD) Key trend-line up from the daily as well connects nicely, we could measure the pattern which I've implemented in, measuring the downward movement we reach the 161.8 Fib retracement which is a nice pull-back area BUT I want you to understand whatever you trade plan indicates to you, for me it's this trend-line up i'd want a daily close below before I can even think of the bears coming into further control, until then I have neutral view on this.
Now, let's look at towards upward movement - I have measured this pattern, we would reach ATH on gold - which doesn't really surprise me considering where we are within the economic cycle, which if you still don't understand what is going on - I advise you to research in depth of economic cycles, various books out there that could extended that knowledge area of yours further, and lastly fundamental view - EURO doesn't like the dollar weakness...! Great articles out there regarding that situation, they've got meeting next week to discuss policies. For EURO 1.1750 key area!
(It wouldn't go directly down or up to those levels, the market does move in waves)
Either direction it goes to - Remember, to me this is still consolidation and support within this pattern drawn (200 EMA something to keep in mind)- It hasn't broken towards up side nor the downside - I am neutral and I wouldn't be surprised if you get fake break outs something to keep in mind and the purple coloured areas drawn, if we still within those levels - still range bound..! Key tip I will give you in this post - Wait for the break out and trade the pull back on the break out indicating if it is a real break out towards direction.
Now... You don't have to take the trade down, which would be counter trend, you could wait for it to decline further and buy the depreciated pull back area and scale into the trade as the price of precious metal increases..Just an idea..!
Enjoy the great momentum the market is giving us all!
Remember: JUST A TRADE IDEA, NOT A RECOMMENDATION.
All the best,
Trade Journal