RLinda ! GOLD-> Stalemate? Up or down?
Updated
Investors are waiting for several reports and fundamentals, such as: the U.S. consumer price index report due out Thursday; the U.S. midterm elections; and the propensity for further rate hikes.
Gold prices fell on Tuesday as the dollar strengthened and investors awaited U.S. inflation data that could determine the Federal Reserve's future course this week.
(Chart 1: Price is still supported by the daily MA-50. Lack of Volume. Global Consolidation)
The U.S. dollar's desire to maintain lost ground is causing gold to pause after the latter surged following the release of jobs data
Friday's data showed that the U.S. unemployment rate rose to 3.7 percent in October, raising hopes that the Fed will move to less aggressive interest rate hikes
Investors will also keep a close eye on Tuesday's midterm elections, as well as U.S. inflation data on Thursday, which is expected to help determine the Fed's future rate decisions.
(Chart 2: Technical indicators RSI, MACD and price relative to the Moving Average)
Gold, technically in the 1672-1624 range, the price makes a false break and forms a consolidation under channel resistance.
The price is in the risk zone, consolidating at 1672, if the bulls strengthen their positions, the price can shoot towards 1700
But in case the price strengthens under the resistance zone of 1672, there are all chances that under the pressure of fundamental factors the price will start descending to the retest of the support of 1620
Regards R. Linda!
Gold prices fell on Tuesday as the dollar strengthened and investors awaited U.S. inflation data that could determine the Federal Reserve's future course this week.
(Chart 1: Price is still supported by the daily MA-50. Lack of Volume. Global Consolidation)
The U.S. dollar's desire to maintain lost ground is causing gold to pause after the latter surged following the release of jobs data
Friday's data showed that the U.S. unemployment rate rose to 3.7 percent in October, raising hopes that the Fed will move to less aggressive interest rate hikes
Investors will also keep a close eye on Tuesday's midterm elections, as well as U.S. inflation data on Thursday, which is expected to help determine the Fed's future rate decisions.
(Chart 2: Technical indicators RSI, MACD and price relative to the Moving Average)
Gold, technically in the 1672-1624 range, the price makes a false break and forms a consolidation under channel resistance.
- -Price is still supported by the 4-hour MA200 and MA50
- -The market is in a stalemate situation, so there is some uncertainty before the release of important fundamental news that can determine the further direction
- -The price is testing the support of MA50 and forming a pullback to the resistance
- - Technical indicators are moving into a neutral zone
The price is in the risk zone, consolidating at 1672, if the bulls strengthen their positions, the price can shoot towards 1700
But in case the price strengthens under the resistance zone of 1672, there are all chances that under the pressure of fundamental factors the price will start descending to the retest of the support of 1620
Regards R. Linda!
Note
(Chart 3. The price forms a local price channel, which coincides with the direction of the global trend. Moving averages are crossed)
M15 chart. Key figures and levels
- Downward price channel
- Moving averages inside the channel indicate neutrality before the fundamental data release
- Moving averages are starting to cross, which may trigger a decline
-First target is 1644 if support is broken down
-Next target is 1624 liquidity zone
-Breakdown of resistance: first target is resistance 1689.
-Next target - liquidity zone 1700
Note
On the higher timeframe (from the daily chart) a descending pattern "Triangle" is formed
Statistically, this pattern most of all reflects the continuation of downward movement, but in situations of breakdown of resistance, the price can provoke the bulls to actively gain positions
Key points. I took a 4-hour chart for better visualization:
- A retest of resistance is formed after a small pullback, there is a chance for a breakdown of resistance and for the price to go beyond the level of 1681.75
- The price is still within the support of MA-50 and MA-200 moving averages from the 4-hour chart
-Technical indicators are in bullish zones
-Investors are loyal to past fundamentals, but focused on upcoming news
In case of breakdown of resistance the metal will be interested to move towards 1729
But at resistance retention by bears the price will go to the bottom of the pattern, namely towards support 1615
Note
The DXY breaks its uptrend line of support on the daily chart. We see a surge of metal energy. The price breaks through triangle resistance and heads towards 1765
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