Gold on critical crossroads regarding Short-term
Gold's general commentary: Gold formed very Bullish structure (respecting my re-Sell area to a great extent) in past few sessions (currently on #4-session consecutive Buying spree), as DX (# -0.27%) experiencing an Sell-off. DX continues to represent my main correlating asset. Technically, Gold may once again reject the current Buying sequence near #1,858.80 - #1,862.80 Resistance belt, if DX bounces off near it's Medium-term Support seen Trading at #102.00, as that development alone can deliver decent Selling entry on Gold, Targeting #1,842.80 and #1,827.80 in succession. On the other hand, if Gold invalidates my re-Sell area along with red candles in continuation on DX, Gold may hit #1,882.80 within #2 session. Even though DX seems pretty weak, I will Buy Gold only if market closes above my re-Sell zone. Conflicting patterns on Gold as the Hourly 4 chart calls for an Resistance test, while Daily chart constitutes an solid Selling opportunity on a horizon which can potentially extend as Low as the Hourly 1 chart’s #1,827.80 Lower High's Lower zone on Intra-day basis, my main point of interest for the moment.
Fundamental analysis: Daily chart has an Selling potential for an #1,845.80 test if correlating instruments allow before Wednesday's session (Yields are on parabolic downtrend (# -4.09%) remaining rather weak for the day. With even Gold's Weekly chart (#1W) turning Bearish marginally, it is again all about how Fed will move Yield along with the DX as the Price-action closing above the #1,862.80 is to maintain the multi-Week Bullish trend. Fundamentally it is the decline on the Bond Yield that is accumulating Gold Buyers (competitive instruments) as until the next week’s Fundamentals; Investors could see more value there. Regarding DX, it remains on a Short-term Descending Channel, so I expect today’s session consolidation to be quickly corrected upwards to new High’s (adding Buying pressure on Gold). I am fully Bearish on Gold regarding Medium-term with Annual projection to be below the #1,600.80 psychological barrier, but as long as DX is on current Low’s, Gold will Trade under Buying pressure.
Technical analysis: As expected, Gold almost invalidated #1,862.80 benchmark and reversed Intra-day towards Hourly 1 chart's Support, even thougfh DX was on serious decline, and what is even more unclear to Investors, got rejected on Technical Support on more than #15 point recovery. Gold was near my Support zone I’ve been mentioning on my remarks aswell I knew that DX developments will have Bearish reaction on Bond Yields which could be used as final push-and-break of the #1,862.80, but Gold got rejected on the aftermath (most likely speculators postponed the uptrend in extension). Like I said on my previous post that level (#1,862.80) representing the Daily chart's crucial Resistance and since May #3, Price-action didn't managed to close the session above it. The last rejection on that level caused Gold to drop to #1,180.80 (June #2013 and December #2013). I am expecting a symmetrical reaction and Bearish reversal on the long run towards #1,678.80 at first, if breaks then the #1,588.80 in extension, before regrouping.
My position: As I spotted many similarities with yesterday's session, Buying pressure from both correlating assets are evident, but Gold isn't rising (as it was in hard decline when DX was Trading near Higher High's peak) indicating elemental Volatile trend and is the main reason why I will remain on sidelines throughout today's session aswell. Market closing above #1,862.80 will add confidence to Buyers, while market closing below the vicinity can be used as an excellent Selling opportunity on Gold.
Fundamental analysis: Daily chart has an Selling potential for an #1,845.80 test if correlating instruments allow before Wednesday's session (Yields are on parabolic downtrend (# -4.09%) remaining rather weak for the day. With even Gold's Weekly chart (#1W) turning Bearish marginally, it is again all about how Fed will move Yield along with the DX as the Price-action closing above the #1,862.80 is to maintain the multi-Week Bullish trend. Fundamentally it is the decline on the Bond Yield that is accumulating Gold Buyers (competitive instruments) as until the next week’s Fundamentals; Investors could see more value there. Regarding DX, it remains on a Short-term Descending Channel, so I expect today’s session consolidation to be quickly corrected upwards to new High’s (adding Buying pressure on Gold). I am fully Bearish on Gold regarding Medium-term with Annual projection to be below the #1,600.80 psychological barrier, but as long as DX is on current Low’s, Gold will Trade under Buying pressure.
Technical analysis: As expected, Gold almost invalidated #1,862.80 benchmark and reversed Intra-day towards Hourly 1 chart's Support, even thougfh DX was on serious decline, and what is even more unclear to Investors, got rejected on Technical Support on more than #15 point recovery. Gold was near my Support zone I’ve been mentioning on my remarks aswell I knew that DX developments will have Bearish reaction on Bond Yields which could be used as final push-and-break of the #1,862.80, but Gold got rejected on the aftermath (most likely speculators postponed the uptrend in extension). Like I said on my previous post that level (#1,862.80) representing the Daily chart's crucial Resistance and since May #3, Price-action didn't managed to close the session above it. The last rejection on that level caused Gold to drop to #1,180.80 (June #2013 and December #2013). I am expecting a symmetrical reaction and Bearish reversal on the long run towards #1,678.80 at first, if breaks then the #1,588.80 in extension, before regrouping.
My position: As I spotted many similarities with yesterday's session, Buying pressure from both correlating assets are evident, but Gold isn't rising (as it was in hard decline when DX was Trading near Higher High's peak) indicating elemental Volatile trend and is the main reason why I will remain on sidelines throughout today's session aswell. Market closing above #1,862.80 will add confidence to Buyers, while market closing below the vicinity can be used as an excellent Selling opportunity on Gold.
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- Trading Gold since #2012'.
- I do provide professional Gold consulting (signals and financial advice) and Gold Trading school.
- Trading Gold since #2012'.
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