Gold Trading within Hourly 4 chart's Neutral Rectangle
Gold's general commentary: Despite being isolated within Neutral Rectangle, Gold is purely responding to the Fundamentals (mostly DX) which is on High speculation mode ahead of the CPI announcements. Fundamentally, if there are no surprises Investors should seek to offload the Selling orders near the #1,700.80 - #1,705.80 potential Support zone. This also confirms to the Long-term Bearish trend of Gold, the Bottom of which I don't believe Traders have seen recently (#1,588.80 or less), and the Bullish projection of DX (ahead of every crisis, DX tends to engage the Buying rally). I expect Selling accumulation until the early hours of the U.S. session (probably around #1,700’s followed by a sharp Bearish turn towards #1,692.80 Support, then #1,682.80 in extension, if CPI adds Buying pressure on DX). Bond Yields are Trading on Bearish Gap fill which is aswell progressively adding Buying pressure on Gold, postponing the Selling sequence to great extent, as Gold is attempting to find equilibrium between the two (DX - Bond Yields).
Technical analysis: Since the #1,722.80 breakout point was not compromised, the Price-action Naturally spiked to the #1,700.80 - #1,705.80 Support zone mentioned on the previous commentary. Based on the #5-session consecutive Higher High’s sequence, Resistance zone is the new local High’s (very possible that Price-action is pricing a Top there, temporary or not) and as both the Hourly 4 chart and Daily chart are Neutral to a very great extent and does not look so good for Buyers (even though Technically, Gold leans more to the Bullish side). The Technical answer is the Hourly 1 chart’s Support near #1,682.80, which has been always touched after every Higher High’s rejection. As discussed, don’t be surprised if you see thin Volume throughout today’s session as Investors are on sidelines awaiting for CPI and only then they will make their move. Gold is kept Higher on pure Fundamental gradient and weak DX (on a parabolic downtrend) but this state has to end sooner or later and Gold should continue it’s Bearish trend and connect with the psychological mark around #1,652.80 mark or less.
Fundamental analysis: The turmoil with the Inflation in U.S. is causing Investors turn to capital from riskier assets for protection (safe-havens in High demand such as Gold), thus causing Gold to gain value. Regardless, DX is the strongest correlation driving Gold at the moment. Fundamentally though Gold is Bullish and cannot overcome such patterns as it is overreacting to every DX and Bond Yields movements. Below #1,700.80 mark (Price-action is already Trading near), strong Ascending Channel pattern breaks and Price-action enters aggressively into the final phase towards Gold's historic Low’s. However, if #1,722.80 (former Support now turned into a Resistance) breaks and market closes above, it will be quick spike towards the September’s #1,727.80 - #1,737.80 Resistance zone on Daily chart, and such outlook will provide me with additional Buying opportunity / entry in my favor. I expect #1,692.80 test within first few Hours on the CPI aftermath as panic hits the market towards closing, if of course CPI adds Buying pressure on DX which I do expect. If you decide to Trade this, implement strict Risk management.
Technical analysis: Since the #1,722.80 breakout point was not compromised, the Price-action Naturally spiked to the #1,700.80 - #1,705.80 Support zone mentioned on the previous commentary. Based on the #5-session consecutive Higher High’s sequence, Resistance zone is the new local High’s (very possible that Price-action is pricing a Top there, temporary or not) and as both the Hourly 4 chart and Daily chart are Neutral to a very great extent and does not look so good for Buyers (even though Technically, Gold leans more to the Bullish side). The Technical answer is the Hourly 1 chart’s Support near #1,682.80, which has been always touched after every Higher High’s rejection. As discussed, don’t be surprised if you see thin Volume throughout today’s session as Investors are on sidelines awaiting for CPI and only then they will make their move. Gold is kept Higher on pure Fundamental gradient and weak DX (on a parabolic downtrend) but this state has to end sooner or later and Gold should continue it’s Bearish trend and connect with the psychological mark around #1,652.80 mark or less.
Fundamental analysis: The turmoil with the Inflation in U.S. is causing Investors turn to capital from riskier assets for protection (safe-havens in High demand such as Gold), thus causing Gold to gain value. Regardless, DX is the strongest correlation driving Gold at the moment. Fundamentally though Gold is Bullish and cannot overcome such patterns as it is overreacting to every DX and Bond Yields movements. Below #1,700.80 mark (Price-action is already Trading near), strong Ascending Channel pattern breaks and Price-action enters aggressively into the final phase towards Gold's historic Low’s. However, if #1,722.80 (former Support now turned into a Resistance) breaks and market closes above, it will be quick spike towards the September’s #1,727.80 - #1,737.80 Resistance zone on Daily chart, and such outlook will provide me with additional Buying opportunity / entry in my favor. I expect #1,692.80 test within first few Hours on the CPI aftermath as panic hits the market towards closing, if of course CPI adds Buying pressure on DX which I do expect. If you decide to Trade this, implement strict Risk management.
- My official and only Telegram Channel: t.me/goldenBear88
- I do provide professional Gold consulting (signals and financial advice) and Gold Trading school.
- Trading Gold since #2012'.
- I do provide professional Gold consulting (signals and financial advice) and Gold Trading school.
- Trading Gold since #2012'.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.