What's up folks! This week's Economic Calendar is shaking Gold price like a coconut tree!
Gold has fallen back to the Fib. support around 1300, which seems to be holding..
I still have a bullish view on Gold in the longer term, so this could be a good chance to enter LONG.
BUT - before blindly trusting my gut, let's have a look at some key facts!
1. There's a chance of double bottom on DXY, which is a bullish signal for USD, thus bearish for Gold.
However, we have an important resistance area given by Fib. retracement level (around 91) and 50 days moving average.
By the way, such moving average is about to be tested, so the upcoming hours will tell us if the DXY downtrend is going to take a break or not!
2. Should DXY downtrend take a break, which could have bearish short-term impact on Gold, we need to fix our eyes on Fib. support levels for Gold.
We have some tough support at 1295 and 1261. The latter is indeed at the intersection between 61.8% Fib. retracement and the lower bound of a long-term upward channel, thus it would be a VERY interesting point to enter a LONG trade, should the DXY downtrend reprise.
So, my plan:
* Check DXY resistance level provided by moving average: if it keeps holding, enter LONG on Gold with Target at 1350 and SL at 1305
* Otherwise, wait for price action to meet the next support levels!
Gold has fallen back to the Fib. support around 1300, which seems to be holding..
I still have a bullish view on Gold in the longer term, so this could be a good chance to enter LONG.
BUT - before blindly trusting my gut, let's have a look at some key facts!
1. There's a chance of double bottom on DXY, which is a bullish signal for USD, thus bearish for Gold.
However, we have an important resistance area given by Fib. retracement level (around 91) and 50 days moving average.
By the way, such moving average is about to be tested, so the upcoming hours will tell us if the DXY downtrend is going to take a break or not!
2. Should DXY downtrend take a break, which could have bearish short-term impact on Gold, we need to fix our eyes on Fib. support levels for Gold.
We have some tough support at 1295 and 1261. The latter is indeed at the intersection between 61.8% Fib. retracement and the lower bound of a long-term upward channel, thus it would be a VERY interesting point to enter a LONG trade, should the DXY downtrend reprise.
So, my plan:
* Check DXY resistance level provided by moving average: if it keeps holding, enter LONG on Gold with Target at 1350 and SL at 1305
* Otherwise, wait for price action to meet the next support levels!
DXY brokeout through its 50 days moving average resistance, thus Gold sunk to test some local support around 1306..
Next stop: lower support levels around 1295?
Hold tight and stay tuned!