The market focuses on CPI data, and in the short term 3640-3660 becomes the dividing line between bulls and bears for gold.
From the news perspective, due to the sharp decline in employment rate, the employment and economic environment in the United States have been affected, and a September interest rate cut is almost a foregone conclusion, which has prompted the recent continuous rise in gold prices. Whether the interim high of 3675 means that gold has peaked remains to be seen.
From a technical perspective, gold rebounded yesterday to correct Tuesday's decline, reaching a high of around 3657 before continuing its technically bearish downward trend and retreating to around 3640. Today, gold's overall volatility in the Asian and European sessions was limited, with 3640-3660 forming a short-term upper pressure, also becoming the dividing line between bulls and bears.
If the CPI data is bullish for gold, the first thing gold needs to do is to break through the short-term pressure of 3640-3660. Once it breaks through strongly and stabilizes above 3660, gold will continue to rise and is expected to set a new high of 690-3700.
On the contrary, if the CPI unexpectedly falls short, gold will only rebound tentatively but will be unable to break through the short-term suppression of 3640-3660, then the bears will officially counterattack and the market will briefly bid farewell to the bulls. A break below 3600 would target the key support level of 3580.
In summary, focus on the 3640-3660 resistance level and the 3620-3610 support level. If the European session sees a pullback to support without a break, a small, light position can be considered, For cautious traders, it's advisable to set the stop-loss order with a buffer of $3-5, depending on their account size.with a potential profit target of $10-$30. More conservative traders can wait for the CPI data before entering a trade.
From the news perspective, due to the sharp decline in employment rate, the employment and economic environment in the United States have been affected, and a September interest rate cut is almost a foregone conclusion, which has prompted the recent continuous rise in gold prices. Whether the interim high of 3675 means that gold has peaked remains to be seen.
From a technical perspective, gold rebounded yesterday to correct Tuesday's decline, reaching a high of around 3657 before continuing its technically bearish downward trend and retreating to around 3640. Today, gold's overall volatility in the Asian and European sessions was limited, with 3640-3660 forming a short-term upper pressure, also becoming the dividing line between bulls and bears.
If the CPI data is bullish for gold, the first thing gold needs to do is to break through the short-term pressure of 3640-3660. Once it breaks through strongly and stabilizes above 3660, gold will continue to rise and is expected to set a new high of 690-3700.
On the contrary, if the CPI unexpectedly falls short, gold will only rebound tentatively but will be unable to break through the short-term suppression of 3640-3660, then the bears will officially counterattack and the market will briefly bid farewell to the bulls. A break below 3600 would target the key support level of 3580.
In summary, focus on the 3640-3660 resistance level and the 3620-3610 support level. If the European session sees a pullback to support without a break, a small, light position can be considered, For cautious traders, it's advisable to set the stop-loss order with a buffer of $3-5, depending on their account size.with a potential profit target of $10-$30. More conservative traders can wait for the CPI data before entering a trade.
Trade active
Perfectly grasp the entry opportunity and TP, and the bros who have referred to it have already made very good profits. While the market was bearish, our long positions still generated significant profits. The analysis in this strategy remains valid, so feel free to review it. Your feedback and corrections are welcome.Trade closed: target reached
Initial jobless claims data hit the highest level in nearly four years, suggesting an increase in layoffs amid a sharp slowdown in hiring. This indirectly reflects the continued sluggishness of the current employment and economic markets, slightly increasing the possibility of a 50 basis point interest rate cut.Gold is currently consolidating around 3633, and the overall price is still under our control. However, even under the influence of data, gold has not been able to effectively break through the upper pressure of 3640-3660, so don't blindly follow the trend at this time. We still maintain our view and continue to pay attention to the upper pressure of 3640-3660. If it falls back to the lower support again, we can still consider going long on gold.
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Don't do meaningless things 🌈| Professional analysis 📊| Help double your account 🚀
🌐Professional signal group🌐:t.me/Allenview
🌐Professional instructor🌐:t.me/Allen_868
🏅Fools question, wise men join, Become a better self🏅
🌐Professional signal group🌐:t.me/Allenview
🌐Professional instructor🌐:t.me/Allen_868
🏅Fools question, wise men join, Become a better self🏅
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.