Gold: Bears in Control Towards the End of a Consolidation Phrase
Risk has been coming off for the past few weeks as the US-China trade war cooled down and Brexit is getting closer to a real Brexit.
The gold has tumbled its way from a previous high near 1520 since last Friday and through the current week.
While we expect gold to fall further, the 1480 region will still provide some significant support which is likely to be the final test for the bull to rally.
But if the bull fails to rally or sustain, 1480 shall be broken and a great extension of a bearish movement will come about.
On the other hand, the dollar may strengthen again during the upcoming FOMC, whether a rate cut will happen or not.
This is because the market has already priced in a rate cut and therefore a cut will no longer cause the dollar to weaken, and if the FOMC decides to hold, that's still going to be bullish for the dollar.
In conclusion, traders can focus on selling the gold for the next 2 weeks (should it turned out the way as described) but keeping in mind that the long-term outlook for the gold still remains bullish.
The gold has tumbled its way from a previous high near 1520 since last Friday and through the current week.
While we expect gold to fall further, the 1480 region will still provide some significant support which is likely to be the final test for the bull to rally.
But if the bull fails to rally or sustain, 1480 shall be broken and a great extension of a bearish movement will come about.
On the other hand, the dollar may strengthen again during the upcoming FOMC, whether a rate cut will happen or not.
This is because the market has already priced in a rate cut and therefore a cut will no longer cause the dollar to weaken, and if the FOMC decides to hold, that's still going to be bullish for the dollar.
In conclusion, traders can focus on selling the gold for the next 2 weeks (should it turned out the way as described) but keeping in mind that the long-term outlook for the gold still remains bullish.
Trade closed: target reached:
Gold price took a sudden twist after falling over a hundred pips during FOMC.
The twist came about mainly due to the selling of the dollar which is kind of contradicting with the fact that the Fed is unlikely to cut rate further this year.
Should the gold close as a bullish-bodied candle today, we have a case to buy gold going forward.
The twist came about mainly due to the selling of the dollar which is kind of contradicting with the fact that the Fed is unlikely to cut rate further this year.
Should the gold close as a bullish-bodied candle today, we have a case to buy gold going forward.
