Last week we saw that price didn't trend hard in one direction but with all the major fundamental events that occurred price action ranged between 1265 area and 1280 with a brief stop hunt at 1285 to clear the board of sellers and grab liquidity for the push down at NFP last Friday. Even negative NFP numbers were not enough to push Gold prices higher, with a future rate hike for USD in December already being priced in Gold moved lower.
This week fundamentals are a lot lighter with just a few central banker speeches (could see price swings during these speeches) and a USD bank holiday on Friday for Veterans day. This could possibly give us some trending price action with continued movement in the current direction. Contracts look like they have been accumulated during last week so possibly we could see a breakout of this range with the bias being to the downside. First target would be the 1260 area and a break of that could take it lower to 1250 support. If price breaks the 1280 cleanly I would stop looking for sells. The two scenarios that price could play would be (A) go for a retest of the broken support just above 1270 then down to the major support at 1260 or (B) a continued move down to 1260 zone, accumulate contracts and then bounce or break. Watch the correlations with other USD pairs to determine the strength of the dollar.
This week fundamentals are a lot lighter with just a few central banker speeches (could see price swings during these speeches) and a USD bank holiday on Friday for Veterans day. This could possibly give us some trending price action with continued movement in the current direction. Contracts look like they have been accumulated during last week so possibly we could see a breakout of this range with the bias being to the downside. First target would be the 1260 area and a break of that could take it lower to 1250 support. If price breaks the 1280 cleanly I would stop looking for sells. The two scenarios that price could play would be (A) go for a retest of the broken support just above 1270 then down to the major support at 1260 or (B) a continued move down to 1260 zone, accumulate contracts and then bounce or break. Watch the correlations with other USD pairs to determine the strength of the dollar.
Comment:
Gold couldnt break the support to get to the target zone. Price has been moving up
