Gold: trade the lower drift

Cannot fight the feeling that the gold price wants to go sideways – again. The core of the channel would be between 1 840 and 1 860, with the outer borders being at 1 825 and 1 875. If that’s the case, gold will go to 1 840 first, possibly going through some fluctuation above that support, touch the low of 1 825 and revert to the upside.

Here are the possible scenarios then.

Easy recovery

In this scenario, the gold price dips into the support channel 1 840 – 1 845 and then gets back up to 1 860 to conquer new local highs.

Lower drift

In bears and bulls are relatively even, the price will keep going sideways across the channel 1 840 – 1 845 for quite a while before moving to another baseline level.

Anchored

This scenario assumes the gold price will drop to 1 825 and stay there in the nearest short-term.

LOG IN

usd

gold

market forecast

technical analysis

Author: FBS Analyst Team

More by this author

Similar

27.03.2024 14:49 US500: A further correction towards 5192 before resuming purchases.

Bearish Scenario: Sales below 5220... Bullish Scenario: Buys above 5225 (if price fails to break below decisively) ...

21.03.2024 12:05 US30 Trading Strategy and Key Levels: Where Are the Supply and Demand Zones?

Bearish Scenario: Sell below 39600... Anticipated Bullish Scenario: Intraday buys above 39750... Bullish Scenario after Retracement: Intraday buys above 39150

14.03.2024 18:22 US100: Consolidated and preparing correction below 18100. Key levels on H4!

Bearish scenario: Shorts below 18100 with TP1: 17900... Anticipated bullish scenario: Intraday Longs above 18130 with TP...

Latest news

03.04.2024 18:19 USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

28.03.2024 16:00 WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.