The price of GOLD remains bearish as the USD strengthens, could this offer short opportunities?
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The price of gold remains bearish as the USD strengthens. Recently the price of Gold has been bullish due to the rise in inflation. When inflation rose in the US investors looked to invest in Gold as a hedge. However, Federal Reserve Chairman Powell stated in May’s meeting they will hike rates by 50bps. This strengthened the USD and drove the price of Gold lower breaking through key support levels.
When viewing the weekly chart we can see that the price has cleared through key lows and heading towards the support of the previous highs. The price broke out of a triangle consolidation pattern recently and the last high before the breakout looks likely to retest. If the price is going to retest these highs we should see the 4hr time frame continue to make lower highs and lower lows. If the price rallies and retests the minor highs and forms bearish price action we can look for short trading ideas. If the price forms a downward trend on the lower time frames that can also lead to a continuation opportunity.
Do you trade EURGBP? you can see our previous analysis on the forex pair here.
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