The price of Gold has rallied into a key resistance level, will the price trade lower from here?
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The price of Gold has come under some pressure in the recent weeks due to the strengthening USD. However, the USD has recently given back some of its gains causing the price of Gold to rally into the resistance level. The price of Gold is likely to continue to trade lower if the data out of the US forces the Federal Reserve to hike rates more aggressively or for longer. If the price trades through the support of $1800.00 we could expect a continuation lower.
Currently this week the price has retraced some of its losses from last week finding support at the key lows of $1805.00. Price has since rallied into the key resistance highs around $1845.00. Looking at the H4 chart we can see a double top pattern forming which could signal a reversal trading opportunities for those looking to sell Gold.
The price on the chart has traded through multiple technical levels and some observations included:
- Price has recently found support at $1805.00.
- The higher time frame analysis suggests the price should continue lower.
- The H4 chart looks to be forming a double top pattern signalling a reversal.
- A break of the neckline of the pattern could invite selling pressure.
Have you watched our USDJPY analysis? You can see it here.
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