Gold expected to reach the 1750 by the end of the week
Gold expected to reach the 1750 by the end of the week
Even though the Gold, starting from July 27th, 2022, is continuously gaining value, clear signs of bullish dominance exhaustion are visible on h4 chart. As Head &. Shoulders h4 candlestick pattern is clearly getting visible, and Dollar losing it's value, mostly because of cooler-than-expected U.S. inflation report for July that raised expectations of a less aggressive interest rate hike in following FOMC meeting, my main point of interest for the following few sessions is the possibility of Gold Price testing the 1770-1773, August 2nd and 8th suport zone. This retest could provide us with more detailed information for the Price Action movement in the following few days/sessions, as the last time, 3rd August in particularly, when 1970-1973 support got broken, the price action reached the 1950 psychological barrier, which I hugely expect to happen once again, as that movement will also fully complete the H&S pattern on h4 chart.
In addition, the daily's chart candle failed to close above the May 13-17 and June 15-16 1807- 1810 support, pointing that buyers did not get enough momentum throughout the day.
What is also worth mentioning, that today's big drop on both Dollar and DX, never technically applied to gold, showing us that main counter-correlation at the moment might be the US10Y, which I expect to raise, as the US Inflation is cooling down and investors could possibly be seeking for riskier investments is the future.
Considering all I have written above, the Price Action could provide us with more detailed information on its direction, once the 1770-1773 support gets tested. If Gold Price manages to breach the support zone, and main correlating asset provide me with confirmation, I will engage selling order, pursuing the 1750 psychological support.
Even though the Gold, starting from July 27th, 2022, is continuously gaining value, clear signs of bullish dominance exhaustion are visible on h4 chart. As Head &. Shoulders h4 candlestick pattern is clearly getting visible, and Dollar losing it's value, mostly because of cooler-than-expected U.S. inflation report for July that raised expectations of a less aggressive interest rate hike in following FOMC meeting, my main point of interest for the following few sessions is the possibility of Gold Price testing the 1770-1773, August 2nd and 8th suport zone. This retest could provide us with more detailed information for the Price Action movement in the following few days/sessions, as the last time, 3rd August in particularly, when 1970-1973 support got broken, the price action reached the 1950 psychological barrier, which I hugely expect to happen once again, as that movement will also fully complete the H&S pattern on h4 chart.
In addition, the daily's chart candle failed to close above the May 13-17 and June 15-16 1807- 1810 support, pointing that buyers did not get enough momentum throughout the day.
What is also worth mentioning, that today's big drop on both Dollar and DX, never technically applied to gold, showing us that main counter-correlation at the moment might be the US10Y, which I expect to raise, as the US Inflation is cooling down and investors could possibly be seeking for riskier investments is the future.
Considering all I have written above, the Price Action could provide us with more detailed information on its direction, once the 1770-1773 support gets tested. If Gold Price manages to breach the support zone, and main correlating asset provide me with confirmation, I will engage selling order, pursuing the 1750 psychological support.
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