FX:XAUUSD in the distribution phase updates highs to 2195. Price enters resistance zone while the dollar index gets a dose of negative news and high inflation.
CPI, Core retail Sales, Initial Jobless Claims and PPI are worth watching in the coming week. Also, quite a few FED & FOMC speeches after Powell's two day speech that said nothing new. The dollar index is testing a strong liquidity area, the price may react with a bounce upwards, which will give a corresponding reaction for forex and gold.
Gold is breaking out ahead. A range between the psychological target of 2200 and the previous ATH of 2150 is forming. The probability of seeing a correction from the upper boundary of the expected range is quite high, as the bull run cannot be permanent. The interest to the metal is very high on the background of weak geopolitics and also the inflow of capital on the background of outflows from ETFs. Gold is not falling yet because of the continuing strong demand from the Central Banks of emerging countries, but at the same time the market maker may organize a liquidation.
Based on the H1 chart, the price is aiming to test 2200-2225, which is a psychologically important target. The price is behaving quite strongly, volumes are growing. Consolidations are formed with continued distribution. There are no pullback zones and strong enough support areas.
But, a retest of the local resistance with the subsequent correction is also possible. But the nearest supports should be treated with caution. The local growth of the dollar may provoke a breakout of gold support, which may activate the sell-off phase
@arvine11, Not right away, though) After correction
RLinda
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@AJChoudhary7, Yes, it's possible.) But it all depends on the fundamental environment and market reaction to 2150
um5sk4skiw
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2100 correction
Elliottwaveofficial
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arvine11
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yes, i think there is a chance to correction 2140-2150
RLinda
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@arvine11, I think from 2200-2225 a correction to 2150 is the most likely scenario
arvine11
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@RLinda linda i think 2200 will not break up, soon sell off sends it to 2000 area
RLinda
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@arvine11, yeah, it's possible Around 2200 resistance is starting to form. The market can keep the price out, which will temporarily turn gold around and give us a correction