Gold is fighting it's 200EMA trying to change it's main trend up.
After recent rally because of more dovish stance fromn F.E.D gold paused at 1230 area running out of fuels and digesting this move finding resistance from it's 200EMA.
After reaching 1250-1260(50%FIB level plus 200MA) i am expecting a big correction move that will create an initial bottom(maybe triggered by the next F.E.D rates hike)around 1180 area before it changes it's main trend upwards.
Today (20/03/2017)gold moved a little higher since yesterday's close at 1229.50 area.
The weakening of the dollar is also something that we have to keep an eye this week to understand how the gold rally will unfold. DXY OR EUR/USD pair has formed head and shoulders(inverse head and shoulders for the pair) and it will be critical to see if neck line will break this week.
If it does case for gold is very bulllsih and i believe it will reach the target area(1250-1260).
If not and neck line remains solid we have a bearish scenario and maybe the first target to short is 1217-1222 area and then 1200-1205 area with a place stop above 1233 area.
TECHNICALLY
We can see that the previous balanced trianle from mid-year 2016 until the end of year 2016 broke downwards as usually balanced triangles do.
This year triangle is about to break,maybe history repeats it's self maybe not.Let's see..
We are forming the 5th Elliott wave as i mentioned before it happens at my articles.
MACD nad CCI levels just gave a buy signal passing Zero,let's see if gold will validate those signals.
Long on XAU/USD at 1252-1260 area(Depeneds on your P/L ratio)(1252$AREA 50% FIB level plus 200MA)
Place SL at 1220
HAPPY TRADING GUYS!!
After recent rally because of more dovish stance fromn F.E.D gold paused at 1230 area running out of fuels and digesting this move finding resistance from it's 200EMA.
After reaching 1250-1260(50%FIB level plus 200MA) i am expecting a big correction move that will create an initial bottom(maybe triggered by the next F.E.D rates hike)around 1180 area before it changes it's main trend upwards.
Today (20/03/2017)gold moved a little higher since yesterday's close at 1229.50 area.
The weakening of the dollar is also something that we have to keep an eye this week to understand how the gold rally will unfold. DXY OR EUR/USD pair has formed head and shoulders(inverse head and shoulders for the pair) and it will be critical to see if neck line will break this week.
If it does case for gold is very bulllsih and i believe it will reach the target area(1250-1260).
If not and neck line remains solid we have a bearish scenario and maybe the first target to short is 1217-1222 area and then 1200-1205 area with a place stop above 1233 area.
TECHNICALLY
We can see that the previous balanced trianle from mid-year 2016 until the end of year 2016 broke downwards as usually balanced triangles do.
This year triangle is about to break,maybe history repeats it's self maybe not.Let's see..
We are forming the 5th Elliott wave as i mentioned before it happens at my articles.
MACD nad CCI levels just gave a buy signal passing Zero,let's see if gold will validate those signals.
Long on XAU/USD at 1252-1260 area(Depeneds on your P/L ratio)(1252$AREA 50% FIB level plus 200MA)
Place SL at 1220
HAPPY TRADING GUYS!!
Trade active
Trade closed: target reached
Trade closed: target reached
Comment:
Main target 1252 area reached..if we keep 1251 level on daily close,good bullish sign for next resistance 1260 level..
Trade closed: target reached
Comment:
Gold is trying to validate the mid term trend line and 50% Fib retracement.
Trade active
