Hello everyone, as we all know the market action discounts everything :)
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During the early North American session, gold struggled to capitalize on the advance or find acceptance beyond the $1,800 level, and fell to near two-week lows, closer to the $1,780 range. and Gold's rebound has been stifled by sustained USD purchasing activity.
Possible Scenario for the market :
Scenario 1 :
The market is nearing the first support at 1781.85 and breaking out of that support will cause a drop in the market that will reach 1769.56 or even 1746.80 zones because breaking out the first support will also lead to breaking out the ascending channel that the market has been having for the last month
Scenario 2 :
The Bulls needs to be ready at the first support line to take control over the market and if that happens we will see the price rally above to the 1816.91 resistance line where the main battle will happen and the winner will determine the outcome for the market.
If the Bulls win then we could be seeing the price going even further almost hitting the 1851.97 range.
If the Bears were able to gain control back then the price will be dropping from 1816.19 back to the 1800 or even less.
Technical indicators show :
Daily Support & Resistance points :
support Resistance
1) 1781.85 1) 1816.91
2) 1769.56 2) 1839.68
3) 1746.80 3) 1851.97
Fundamental point of view :
The latest US monthly jobs report released on Friday showed that the economy added the fewest jobs in seven months, dashing hopes for an imminent Fed taper announcement at the September meeting. However, investors seem convinced that the US central bank might still begin rolling back its pandemic-era stimulus in November. This was reinforced by the recent surge in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond shot to the highest level since mid-July, around 1.385% on Tuesday and helped revive the USD demand.
Meanwhile, concerns that the resurgence of COVID-19 cases could derail the economic recovery took its toll on the global risk sentiment. This was evident from a generally weaker tone around the equity markets and extended some support to traditional safe-haven assets. The flight to safety triggered a fresh leg down in the US bond yields, which further helped limit any deeper losses for the non-yielding gold. That said, the lack of any buying interest suggests that this week's corrective pullback from multi-week tops might still be far from being over. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
During the early North American session, gold struggled to capitalize on the advance or find acceptance beyond the $1,800 level, and fell to near two-week lows, closer to the $1,780 range. and Gold's rebound has been stifled by sustained USD purchasing activity.
Possible Scenario for the market :
Scenario 1 :
The market is nearing the first support at 1781.85 and breaking out of that support will cause a drop in the market that will reach 1769.56 or even 1746.80 zones because breaking out the first support will also lead to breaking out the ascending channel that the market has been having for the last month
Scenario 2 :
The Bulls needs to be ready at the first support line to take control over the market and if that happens we will see the price rally above to the 1816.91 resistance line where the main battle will happen and the winner will determine the outcome for the market.
If the Bulls win then we could be seeing the price going even further almost hitting the 1851.97 range.
If the Bears were able to gain control back then the price will be dropping from 1816.19 back to the 1800 or even less.
Technical indicators show :
- The market is below the 5 10 20 50 100 and 200 MA and EMA (Strong Bearish sign)
- The RSI is at 45.29 showing a Neutral state in the market, With NO divergence between the market and the indicator.
- The Stoch is having a negative crossover between %K (17.09) and %D (44.29), notice that %K reached the oversold zone already
Daily Support & Resistance points :
support Resistance
1) 1781.85 1) 1816.91
2) 1769.56 2) 1839.68
3) 1746.80 3) 1851.97
Fundamental point of view :
The latest US monthly jobs report released on Friday showed that the economy added the fewest jobs in seven months, dashing hopes for an imminent Fed taper announcement at the September meeting. However, investors seem convinced that the US central bank might still begin rolling back its pandemic-era stimulus in November. This was reinforced by the recent surge in the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond shot to the highest level since mid-July, around 1.385% on Tuesday and helped revive the USD demand.
Meanwhile, concerns that the resurgence of COVID-19 cases could derail the economic recovery took its toll on the global risk sentiment. This was evident from a generally weaker tone around the equity markets and extended some support to traditional safe-haven assets. The flight to safety triggered a fresh leg down in the US bond yields, which further helped limit any deeper losses for the non-yielding gold. That said, the lack of any buying interest suggests that this week's corrective pullback from multi-week tops might still be far from being over. According to Fxstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.