GOLD → False breakdown before the news. What to expect?
Updated
XAUUSD , amid the decline we were waiting for, reaches the target of 2015 and forms a false breakout. But the only thing that is constant is the range. What should we expect from the price at this point?Pic: False break of trend line support
The dollar stops again and goes into consolidation before another series of news. Today the market is waiting for the CPI.
Gold enjoys a very high interest from the Central Bank and traders are actively trying to buy and contain a possible fall. Thus, the false breakdown provokes the growth and strengthens the prices to the resistance 2064 and the trend line. A false breakdown may be highly likely to be followed by a small correction before further growth. Trading inside the range continues, so it is worth to follow the appropriate strategy. Since we have no actual trend, it is acceptable to sell or buy, but only if there is a strong reversal zone and a signal.
Resistance levels: 2064, trend line, 2037
Support levels: 2018, 2015
Inside the range, the price is moving between the levels. Based on the situation, I expect a false breakdown of the nearest level, correction to support before further growth to the upper boundary of the range.
Regards R. Linda!
Note
The following important news is published today:
13:30 GMT - Core CPI (MoM) (Jan) - expected 0.3% previously 0.3%
13:30 GMT - Core CPI (YoY) (Jan) - expected 3.7% instead of 3.9%.
13:30 GMT - CPI (YoY) (Jan) - expected 2.9% previously 3.4%
13:30 GMT - CPI (MoM) (Jan) - expected 0.2% previously 0.3%
In general, analysts expect a decline in the index, i.e. bearish data, which may put pressure on the dollar. Accordingly, gold may continue to grow towards the target.
But, the market reacts to the actual data. If the figures will be lower than expected data, gold may grow, and accordingly, if the figures will be higher than expected, and this is a favorable scenario for the dollar, in this case, gold will continue to correct downward.
Note
In the idea published on Sunday, we were ready to see a decline in price towards global trend support
Today's news, strong for the dollar, destroys short-term gold buyers
Price is testing levels below 2000
Note
1990…Note
The price breaks the support of the range and forms a consolidation of the price below the level. The closing of yesterday's session (daily candle) hints us that the decline may continue
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