Gold remains to be under heavy pressure / #1,852.80 on the cards
Gold's general commentary: New session Low is seen Trading at #1,872.80, below #1,877.80 (also was representing strong Support) is broken as Hourly 4 chart is assuming control of the downtrend on a smaller scale with Daily chart still not becoming Oversold (slowly turning from Neutral to Bearish). This may suggest that the Descending Channel requires consolidation before it moves Lower with a rejection near #1,872.80. In any case, yesterday’s session Daily candle was so strong that it erased #50% of the gains of the previous #2 (remember my remark about expecting steep Daily chart’s candle ahead). This has put Weekly chart back on Bearish track and with DX breaking above #103.20 once again, I can't see how Gold can protect the #1,852.80 level for much longer, unless DX have a strong pullback (unlikely). Despite being within an Hourly 4 chart’s solid Descending Channel, Gold is purely responding to the Fundamentals of the DX that is on High speculation ahead of tomorrow’s session NFP announcement which may heavily pressure Gold.
Fundamental analysis: Fundamentally, if there are no further surprises Investors should seek to offload the Selling orders near the #1,872.80 - #1,882.80 zone once again. This also confirms to the Long-term Bearish trend of Gold, the bottom of which I don't believe Gold still reached on Yearly fractal, and the Bullish projection of the DX (U.S. Dollar is soaring ahead of every financial crisis, engaging strong Bullish rally). I expect Selling accumulation until the early hours of the U.S. session (probably around #1,872.80 - #1,878.80 followed by a sharp Bearish turn towards #1,852.80 psychological barrier and Support variance). Since weekend break is close, I will take no wild bets on the market and don’t be surprised if you see thin Volume throughout today’s session ahead of NFP reading.
Technical analysis: Since #1,877.80 Support got invalidated, the former Bullish recovery pattern got invalidated and as the Hourly 4 chart's #1,872.80 (in the same manner representing yesterday's session Low, line of utmost importance), continues to act as a Support. This is rather straightforward on a Short-term basis. If a Daily chart candle closes below the #1,877.80, Bearish Short-term trend should continue as Low as roughly #1,848.80 - #1,852.80 where the psychological barrier of #1,800.80 will be waiting below to be tested. In order to invalidate current Selling configuration (in case if #1,872.80 holds) Gold may make recovery attempt towards Hourly 4 chart's #1,886.80 - #1,892.80 as it happened both on April #28 and May #5. It is important to note that Technically, variance is showing strong Selling signals and Fundamentally it appears that currently Gold is not correlated with Bond Yields (whose mixed levels should have had Gold much Higher) but with the act that Gold follows DX (which is Bearish for Gold), Long-term Investors that have Bought Months back are closing their positions in an attempt to limit the risk, where Gold is expected to continue the Selling momentum even on Medium-term. I expect #1,852.80 barrier test within #2 sessions.
My position: As NFP High impact event announcement is planned just within few Hours, I will once again implement strict Risk management to protect my capital. I am expecting jobs growth on NFP which can extend the miraculous recovery candles on DX, adding strong Selling pressure on Gold. If #1,872.80 breaks, I will Sell Gold on spot towards #1,852.80 barrier, however if line is preserved, I will await NFP numbers and then Trade after the news if #1,872.80 breaks then. My practical suggestion for both Short and Medium-term Traders is to implement strict Risk management and protect their capital, especially since weekend break is near.
Fundamental analysis: Fundamentally, if there are no further surprises Investors should seek to offload the Selling orders near the #1,872.80 - #1,882.80 zone once again. This also confirms to the Long-term Bearish trend of Gold, the bottom of which I don't believe Gold still reached on Yearly fractal, and the Bullish projection of the DX (U.S. Dollar is soaring ahead of every financial crisis, engaging strong Bullish rally). I expect Selling accumulation until the early hours of the U.S. session (probably around #1,872.80 - #1,878.80 followed by a sharp Bearish turn towards #1,852.80 psychological barrier and Support variance). Since weekend break is close, I will take no wild bets on the market and don’t be surprised if you see thin Volume throughout today’s session ahead of NFP reading.
Technical analysis: Since #1,877.80 Support got invalidated, the former Bullish recovery pattern got invalidated and as the Hourly 4 chart's #1,872.80 (in the same manner representing yesterday's session Low, line of utmost importance), continues to act as a Support. This is rather straightforward on a Short-term basis. If a Daily chart candle closes below the #1,877.80, Bearish Short-term trend should continue as Low as roughly #1,848.80 - #1,852.80 where the psychological barrier of #1,800.80 will be waiting below to be tested. In order to invalidate current Selling configuration (in case if #1,872.80 holds) Gold may make recovery attempt towards Hourly 4 chart's #1,886.80 - #1,892.80 as it happened both on April #28 and May #5. It is important to note that Technically, variance is showing strong Selling signals and Fundamentally it appears that currently Gold is not correlated with Bond Yields (whose mixed levels should have had Gold much Higher) but with the act that Gold follows DX (which is Bearish for Gold), Long-term Investors that have Bought Months back are closing their positions in an attempt to limit the risk, where Gold is expected to continue the Selling momentum even on Medium-term. I expect #1,852.80 barrier test within #2 sessions.
My position: As NFP High impact event announcement is planned just within few Hours, I will once again implement strict Risk management to protect my capital. I am expecting jobs growth on NFP which can extend the miraculous recovery candles on DX, adding strong Selling pressure on Gold. If #1,872.80 breaks, I will Sell Gold on spot towards #1,852.80 barrier, however if line is preserved, I will await NFP numbers and then Trade after the news if #1,872.80 breaks then. My practical suggestion for both Short and Medium-term Traders is to implement strict Risk management and protect their capital, especially since weekend break is near.
- My official and only Telegram Channel: t.me/goldenBear88
- I do provide professional Gold consulting (signals and financial advice) and Gold Trading school.
- 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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