FOREX Chart Of The Day: GOLD- Sellers In Control
Are you trading Gold this week?
The price of Gold has finally broken out of a key consolidation pattern, but where will the price find support?
And can we trade it short to that level?
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, Head Currency Analyst.
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In this video, we will take a look at XAU as the commodity continues to fall.
So, we’re looking for areas to target if you’re looking for XAU shorts and looking at potential areas where we may see buyers step back in.
First things first, I’m going to go over to the US Dollar Index because we’re looking for longs on the US Dollar because we’re in this retracement phase here.
The market impulses, retraces, impulse, and retraces. Now, we’re in that impulse phase. We’re looking to buy the US Dollar back into support and resistance levels, and there’s a nice level running right through the middle, here, suggesting that we could see some Dollar strength for a little while longer. If that’s the case, then the price of XAU could be impacted further, and we could see a continuation of the downside here on XAU. There’s a nice level, around 1696, where I expect we could see the market target on this move down. We have this nice resistance turned support, here. Is the price going to find itself back at this level for either a continuation to the long side? Or a break and retest to the downside?
I like the combination of the US Dollar Index in line with this XAU move, here. Now that we’re starting to see this weekly move, here, we can go to the daily timeframe and potentially look for some trading opportunities on some pullbacks because the price has been range-bound for a while now. It seems to me that the institutions were building up positions here and have now started to push the price to the downside. Sellers have won out of this consolidation, here.
If the price were to get back to the consolidation zone, it would be a good idea to look for some sellers to come back into the market and look for some short opportunities back down into this key area of 1696.
Keep an eye on this. Keep an eye on the US Dollar Index as well, and I’ll speak to you in the next video.
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