Mixed signals on Gold / Will Trade the breakout

Gold Fundamental overview: Gold is on the rise again driven by geo-political factors having broken the first Resistance of #1,808.80 visible on Hourly 4 chart, but lost momentum due to small recovery on DX side. Once again Fundamentals worked favorably as expected as DX broken the Support throughout yesterday’s U.S. opening, all occurred in #1 session. However Daily chart is on strong Overbought levels and indicates that Gold may be on the consolidation candles as today’s U.S. session approaches. With the Stimulus news already digested by market, virus uncertainty and main correlating assets adding Buying pressure (Short-term) - I cannot expect anything else than Gold to soar under these conditions - but if #1,795.80 breaks first, then I will pursue #1,780.80 and #1,772.80 in extension. #1,800.80 psychological barrier is my first pick as is surely on the cards regarding #2 session horizon. Gold is Trading on a healthy Channel Up and is near pricing it’s Higher Low (rising for #3rd consecutive session, and one Neutral session yesterday). This is configuration regarding Intra-day basis as on the long run, Daily chart remains well Supported on the multiple rebound points as the Weekly chart candle succession is calling for #1,827.80 announcing that Gold is on eminent uptrend. Always keep in mind that as soon as DX (my strongest correlation at the moment) and Bond notes Trades positively for Gold (Both to loose), aggressive move is next, while at the moment I have Neutral movements all along without firm pattern to Trade by.


Technical analysis: Gold is again under pressure (Xau-Usd in focus on my analysis) on the current Hourly 4 candle, despite staying Technically Neutral, with the Hourly 1 ready to Support the Price-action - soon to be tested. It is not at all encouraging for Buyers, that the Daily chart is about to turn Bearish which in my opinion indicates that if the Hourly 1 Support breaks again (#1,795.80), Gold can even test the #1,760’s belt. Fed chairman Powell’s testimony was again on the agenda as I will monitor the Price-action and how market will digest the post-Fed candles before finding any meaningful pattern. It is well known that DX looses after every speech of Fed chair so Sellers should be extra careful since Gold/DX is the strongest correlation at the moment. The session went according to the plan I set earlier as Gold got rejected just below #1,808.80 area (strong Resistance) showing reversal signs. Gold was Technically and Fundamentally equipped for an decline, but now after Powell's speech, I can have different outlook on my hands. If U.S. opening delivers Bearish sentiment (#10$ or more), I may see a quiet Selling session.


My position: Gold can break through both sides, as taking strong bets on the market can surely backfire. Best option at the moment is to Trade the breakout, #1,795.80 towards #1,762.80, and #1,811.80 towards #1,827.80.