XAUUSD Reacting to end of year FEDs ease
"There is a time to go short, a time to go long and a time to go fishing"
As the end of year approaches, we see an ease in the aggression of the commitment of the federal reserve to strengthen USD. They have to, a currency getting too strong too sudden is not a good omen for the country itself on a macro level. Inflation is a turmoil we get to see today and as the time to close the ledger approaches, USA is easing it out on USD. The impact on precious metals was quite imminent.
Gold is undergoing a bounce from a three year support and is expected to rise as far 1915 in the next few coming weeks or even days. Expect it to rise till November before we start to experience a ranging market or a clear bounce or a clear breakout. We are not expecting a higher movement unless it breaks through 1925.
Note: The most probable target on the screen appears to be 1830 at the moment! If 1830 does not hold only then we shall be expecting 1875-1915!!
Technical perspectives:
1- Hammer on July monthly candle
2- We are above 0.236 retracement level on Fibo Retracement which makes 0.382 (1830) an ideal and most probable level to think of next
3- No sign on weekly timeframe to go short
4- A mega bullish engulfing on Daily Timeframe
5- An ideal stop loss would be 1775 but it is unlikely to break lower than 1785
Best of luck!! Happy trading and Happier Profits :)
As the end of year approaches, we see an ease in the aggression of the commitment of the federal reserve to strengthen USD. They have to, a currency getting too strong too sudden is not a good omen for the country itself on a macro level. Inflation is a turmoil we get to see today and as the time to close the ledger approaches, USA is easing it out on USD. The impact on precious metals was quite imminent.
Gold is undergoing a bounce from a three year support and is expected to rise as far 1915 in the next few coming weeks or even days. Expect it to rise till November before we start to experience a ranging market or a clear bounce or a clear breakout. We are not expecting a higher movement unless it breaks through 1925.
Note: The most probable target on the screen appears to be 1830 at the moment! If 1830 does not hold only then we shall be expecting 1875-1915!!
Technical perspectives:
1- Hammer on July monthly candle
2- We are above 0.236 retracement level on Fibo Retracement which makes 0.382 (1830) an ideal and most probable level to think of next
3- No sign on weekly timeframe to go short
4- A mega bullish engulfing on Daily Timeframe
5- An ideal stop loss would be 1775 but it is unlikely to break lower than 1785
Best of luck!! Happy trading and Happier Profits :)
