Strong 15 points profit on Tuesdays early EU session XAUUSD
Strong 15 points profit on Tuesdays early EU session
As I wrote during my last week analysis „10 Points of profits with low volatility of Gold price- idea that could be found among related ideas section“, the bullish pressure on Gold’s price after 13 weeks finally got exhausted, as price action lost all of its strength and closed the daily candlestick below the 1932 daily chart resistance on 27th January (end of the last week).
The strong 1915-1918 support (shown in red rectangle on my previous chart) got broken on Tuesdays early EU session, right at the time I expected it following my earlier instructions, after which I opened my selling order pursuing the 1900 psychological barrier, placing my SL on 1926. I closed my order near the TP zone, with total profit od 15 points.
The ascending channel formed od daily’s chart starting from December 6th, 2022, got broken on last Thursday showing clear signs of trend reversal, same as it did in the period between the January 31st - March 9th 2022 ascending channel, after which Gold lost approximately 130 Points (which is not fully reliable as the Ukraine-Russian conflict strongly affected the markets in that period) and May 6th – June 3rd 2021 ascending channel, after which Gold lost approximately 100 Points, which I hugely expect to happened once again, as Gold most usually repeat its cycles.
Considering the previously mentioned fact, there is a lot of possibility for Gold to test the 1850 psychological barrier with possibility of extension towards the 1831 support zone very soon.
Regarding the h4 chart, Gold is currently trading withing mini descending channel starting from Thursdays early EU session, but due to fundamental events- Initial Jobless Claims, which showed numbers lower than expected (183K vs 200K) and NFP report showing huge growth in labour market (3x more than expected), the Dollar Index took bullish rally which added huge selling pressure on Gold, with Gold losing 84 Points during the last two trading days.
As I found this decline on Gold pure fundamentally, the Price action will most probably regain some of its lost value, with probability of reaching the 1886 or even 1900 resistance, after which I expect the further meltdown on Gold’s price.
Regarding the economic calendar for the following week, the most important event will be the Fed Chair Jerome Powell speech scheduled for Tuesday 18:40 CET, which could provide us possibility of further hawkish stance on rate hike policy that can push the dollar index even further upwards, as last week’s report showed great economic recovery.
Regarding all the facts that I have previously written, I will carefully monitor the market, and engage my selling order only if the 1878, 1887 or 1900 resistance zone gets rejected or if the Price action breach the 1850 psychological barrier, pursuing the following supports as shown on my chart above.
As I wrote during my last week analysis „10 Points of profits with low volatility of Gold price- idea that could be found among related ideas section“, the bullish pressure on Gold’s price after 13 weeks finally got exhausted, as price action lost all of its strength and closed the daily candlestick below the 1932 daily chart resistance on 27th January (end of the last week).
The strong 1915-1918 support (shown in red rectangle on my previous chart) got broken on Tuesdays early EU session, right at the time I expected it following my earlier instructions, after which I opened my selling order pursuing the 1900 psychological barrier, placing my SL on 1926. I closed my order near the TP zone, with total profit od 15 points.
The ascending channel formed od daily’s chart starting from December 6th, 2022, got broken on last Thursday showing clear signs of trend reversal, same as it did in the period between the January 31st - March 9th 2022 ascending channel, after which Gold lost approximately 130 Points (which is not fully reliable as the Ukraine-Russian conflict strongly affected the markets in that period) and May 6th – June 3rd 2021 ascending channel, after which Gold lost approximately 100 Points, which I hugely expect to happened once again, as Gold most usually repeat its cycles.
Considering the previously mentioned fact, there is a lot of possibility for Gold to test the 1850 psychological barrier with possibility of extension towards the 1831 support zone very soon.
Regarding the h4 chart, Gold is currently trading withing mini descending channel starting from Thursdays early EU session, but due to fundamental events- Initial Jobless Claims, which showed numbers lower than expected (183K vs 200K) and NFP report showing huge growth in labour market (3x more than expected), the Dollar Index took bullish rally which added huge selling pressure on Gold, with Gold losing 84 Points during the last two trading days.
As I found this decline on Gold pure fundamentally, the Price action will most probably regain some of its lost value, with probability of reaching the 1886 or even 1900 resistance, after which I expect the further meltdown on Gold’s price.
Regarding the economic calendar for the following week, the most important event will be the Fed Chair Jerome Powell speech scheduled for Tuesday 18:40 CET, which could provide us possibility of further hawkish stance on rate hike policy that can push the dollar index even further upwards, as last week’s report showed great economic recovery.
Regarding all the facts that I have previously written, I will carefully monitor the market, and engage my selling order only if the 1878, 1887 or 1900 resistance zone gets rejected or if the Price action breach the 1850 psychological barrier, pursuing the following supports as shown on my chart above.
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