XAUUSD failed to breach the Neutral Rectangle Resistance
XAUUSD failed to breach the Neutral Rectangle Resistance
As the late US trading session approached, and the 75 Point US Interest rate hike was unveiled, the DX (currently the main counter- correlating asset for XAUUSD) got rejected near the h4 107.300 resistance zone and bounced back to 106.250 h4 support zone, adding huge buying pressure on Gold, which gained bullish momentum trading with app. 20 points and finally closing the last h4 candle below the 1735,90-1738,90 resistance zone. The current set-up on the Gold Spot did not provide enough bullish momentum for it to reach the 1750,90 psychological barrier, as the Price Action was once again rejected near the previously mentioned resistance zone. The last two times (13th and 22nd of July) when the Price Action tested the resistance and failed to close the h4 candle above it, it withdrew back to 1710,90-1713,90 support, which I hugely expect to happen by the end of current week.
If the1710,90-1713,90 support get tested and invalidated, with both counter-correlating assets trading in bearish favour for Gold, I will engage selling order pursuing the 1700,90 1st psychological support and 1678,90 in extension.
As the late US trading session approached, and the 75 Point US Interest rate hike was unveiled, the DX (currently the main counter- correlating asset for XAUUSD) got rejected near the h4 107.300 resistance zone and bounced back to 106.250 h4 support zone, adding huge buying pressure on Gold, which gained bullish momentum trading with app. 20 points and finally closing the last h4 candle below the 1735,90-1738,90 resistance zone. The current set-up on the Gold Spot did not provide enough bullish momentum for it to reach the 1750,90 psychological barrier, as the Price Action was once again rejected near the previously mentioned resistance zone. The last two times (13th and 22nd of July) when the Price Action tested the resistance and failed to close the h4 candle above it, it withdrew back to 1710,90-1713,90 support, which I hugely expect to happen by the end of current week.
If the1710,90-1713,90 support get tested and invalidated, with both counter-correlating assets trading in bearish favour for Gold, I will engage selling order pursuing the 1700,90 1st psychological support and 1678,90 in extension.
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