Trading Economics:
Gold held above $1,970 an ounce on Wednesday, hovering near its strongest levels in two months amid a general dollar weakness, as easing US inflation raised hopes that the Federal Reserve is close to the end of its current monetary policy tightening cycle. Still, the US central bank is widely expected to raise interest rates by 25 basis points this month, while traders scaled back bets of further rate increases this year. Investors now await more US data and corporate earnings reports from major US firms this week for more clues on the economy.
Market Structure
- Bullish MS (W,D,4H,1H)
- The trend is clear to the upside on all timeframes. Be careful for a pullback, as gold has just tested significant HTF Supply KL (1983.50) and has had strong reactions from this point.
- Don't trade counter-trend, be ready for potential liquidity grabs, fakeouts, and look for set ups as buyers may look to enter at more favorable demand zones after grabbing liquidity.
Data in focus:
- Building permits & Housing starts at 8:30
- Look for short-term impact as this usually has low implications on the markets
Trade Ideas:
1. ABC BULLISH breakout above high of day (1981)
2. ABC BULLISH rejections at 1H demand zone (1974)
3. ABC BULLISH rejections at HTF demand zone (1964)
Gold held above $1,970 an ounce on Wednesday, hovering near its strongest levels in two months amid a general dollar weakness, as easing US inflation raised hopes that the Federal Reserve is close to the end of its current monetary policy tightening cycle. Still, the US central bank is widely expected to raise interest rates by 25 basis points this month, while traders scaled back bets of further rate increases this year. Investors now await more US data and corporate earnings reports from major US firms this week for more clues on the economy.
Market Structure
- Bullish MS (W,D,4H,1H)
- The trend is clear to the upside on all timeframes. Be careful for a pullback, as gold has just tested significant HTF Supply KL (1983.50) and has had strong reactions from this point.
- Don't trade counter-trend, be ready for potential liquidity grabs, fakeouts, and look for set ups as buyers may look to enter at more favorable demand zones after grabbing liquidity.
Data in focus:
- Building permits & Housing starts at 8:30
- Look for short-term impact as this usually has low implications on the markets
Trade Ideas:
1. ABC BULLISH breakout above high of day (1981)
2. ABC BULLISH rejections at 1H demand zone (1974)
3. ABC BULLISH rejections at HTF demand zone (1964)