Gold - Trading in Range
Updated
After FED Interest Rate Decision Last Night, Gold has reach lowest point of the year at 1653.87$ then rebound to the highest point of the week 1688.125 during Powell's speech time. The weekly range is now 1688.125 - 1653.87 = 34.25$ while the average volatility is about 53$ per week.
The possibility of Gold price by end of this week can be follow
1. Trying to do Lower Low (lower than 1653) : Trend following and Sell Momentum
- Considering weekly highest point 1688.125 - 53 = 1635$ shall be support zone
- However, 1650 is also quite strong support zone now. Gold has not reach and test yet at this level.
- Support condition from USD money flow. As DXY tends to reach new higher high 112 or above, gold has possibility to go down.
2. Trying to break resistant 1690 : Trend contrarian but toward strong buy momentum
- Considering weekly Lowest point 1653.87 + 53 = 1706$ shall be resistance zone
- Support condition from USD money flow. As DXY is doing the correction after higher high reach last night. While DXY drop, gold has high possibility to raise up.
Since this week it is quite move in range (sideway and base creation), it can be considered the direction to both side. Nevertheless, considering primary trend and Macro economics news, gold will be in preferably in decline stage.
Remember to Sell at High and buy at low level, you can use daily ATR or Weekly ATR to help you to understand where you are in the graph.
Just sharing opinion, not trading advisory.
The possibility of Gold price by end of this week can be follow
1. Trying to do Lower Low (lower than 1653) : Trend following and Sell Momentum
- Considering weekly highest point 1688.125 - 53 = 1635$ shall be support zone
- However, 1650 is also quite strong support zone now. Gold has not reach and test yet at this level.
- Support condition from USD money flow. As DXY tends to reach new higher high 112 or above, gold has possibility to go down.
2. Trying to break resistant 1690 : Trend contrarian but toward strong buy momentum
- Considering weekly Lowest point 1653.87 + 53 = 1706$ shall be resistance zone
- Support condition from USD money flow. As DXY is doing the correction after higher high reach last night. While DXY drop, gold has high possibility to raise up.
Since this week it is quite move in range (sideway and base creation), it can be considered the direction to both side. Nevertheless, considering primary trend and Macro economics news, gold will be in preferably in decline stage.
Remember to Sell at High and buy at low level, you can use daily ATR or Weekly ATR to help you to understand where you are in the graph.
Just sharing opinion, not trading advisory.
Note
Day Possibility (22 Sep)Based on 1 ATR Day (23$)
Possibility of High 1655 + 23 = 1678
Possibility of Low 1678 - 23 = 1655
It is moderate volatility today from Japan government news to sanction JPY and Swiss Bank for interest rate increase. There is possibility that Gold will move more than average (range probably more than 23$)
Be careful in US session.
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