Gold reaching the 1950 psychological barrier is inevitable
Gold reaching the 1950 psychological barrier is inevitable
As discussed during my last week's commentary and my prediction of Gold reaching the strong support (the Idea that can be found among "Related Ideas"), the Gold finally managed to reach the 1770-1773 August 2nd and 8th support zone on yesterday's and today's early EU sessions, but failed to breach it rebounding back to 1783-1786 resistance.
The 1770-1773 now represents strong support zone, which if and when gets broken could easily push the Gold Spot Price Action back to 1950 psychological barrier.
The dollar index (index that measures the value of the dollar against a basket of six foreign currencies: the euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona) is currently trading within bullish rectangle on h4 chart. DX failed to breach the h4 July 25th and 28th, August 3rd and 5th strong h4 106.915 resistance, but when it does, it will definitely push the Gold Spot towards previously mentioned target.
As the fed's minutes from last FOMC meeting is set to be released on Wednesday at 8 PM EET, where I expect no dovish stance, as inflation numbers are still running high, even though that the last CPI report showed numbers lower than expected (5.9%/actual vs. 6.1%- forecasted) and inflation is still way above the Fed's target of 2% (CPI report for July was hugely affected by Oil Price meltdown, as the Oil price was at the 40-year high's during previous few reports, with other prices mostly at the same level, which is showing no signs of inflation cool down), on tomorrow's late US session I expect DX to breach the 106.915 strong resistance, which will hugely affect the Gold, as the Dollar is currently main counter correlating asset.
Considering all I have written above, I will carefully monitor the market from early EU session, seeking for DX breaching the 106.915 resistance, which should apply huge selling pressure on the Gold Spot/ USD. Therefore I will engage selling order when the Price Action breaks the 1770 support, pursuing the 1950 psychological resistance (placing my SL on 1781).
As discussed during my last week's commentary and my prediction of Gold reaching the strong support (the Idea that can be found among "Related Ideas"), the Gold finally managed to reach the 1770-1773 August 2nd and 8th support zone on yesterday's and today's early EU sessions, but failed to breach it rebounding back to 1783-1786 resistance.
The 1770-1773 now represents strong support zone, which if and when gets broken could easily push the Gold Spot Price Action back to 1950 psychological barrier.
The dollar index (index that measures the value of the dollar against a basket of six foreign currencies: the euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona) is currently trading within bullish rectangle on h4 chart. DX failed to breach the h4 July 25th and 28th, August 3rd and 5th strong h4 106.915 resistance, but when it does, it will definitely push the Gold Spot towards previously mentioned target.
As the fed's minutes from last FOMC meeting is set to be released on Wednesday at 8 PM EET, where I expect no dovish stance, as inflation numbers are still running high, even though that the last CPI report showed numbers lower than expected (5.9%/actual vs. 6.1%- forecasted) and inflation is still way above the Fed's target of 2% (CPI report for July was hugely affected by Oil Price meltdown, as the Oil price was at the 40-year high's during previous few reports, with other prices mostly at the same level, which is showing no signs of inflation cool down), on tomorrow's late US session I expect DX to breach the 106.915 strong resistance, which will hugely affect the Gold, as the Dollar is currently main counter correlating asset.
Considering all I have written above, I will carefully monitor the market from early EU session, seeking for DX breaching the 106.915 resistance, which should apply huge selling pressure on the Gold Spot/ USD. Therefore I will engage selling order when the Price Action breaks the 1770 support, pursuing the 1950 psychological resistance (placing my SL on 1781).
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