The US Dollar has been remarkably sluggish for the past few weeks despite being within a distinct Demand zone…
Is the Future of Gold Clear Now?
2022-12-19 • Updated
WEEKLY TIMEFRAME - XAUUSD
For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances. Considering this from the Weekly timeframe, one can easily identify the market structure as bearish. The Fibonacci tool also indicates that price has been rejected from the 88.2% (which is a relevant level based on my personal trading approach). Let's break it down even further.
DAILY TIMEFRAME - XAUUSD
Here on the Daily timeframe, the bias seems a lot clearer. We see the initial reaction happened from a trendline resistance with the help of a rally-base-drop supply zone. Having completed that reaction, we switch to the lower timeframe to validate the possibility of a continuation.
4H TIMEFRAME - XAUUSD
The marked zone between 1770 and 1788 constitutes the preferred point of entry. As you can see, we have confirmed the initial reaction from the Daily supply zone with a break-of-structure on the lower timeframe. The BoS (Break of Structure) also happens to have created a new supply zone. As a result, we can expect price to drop from the area of entry with profit targets at; 1715, 1675, and 1655.
It is important to understand that the trading of CFDs comes at risk; if not properly managed, you may lose all of your trading capital. To avoid costly mistakes while you look to trade these opportunities, be sure to do your own due diligence and manage your risk appropriately.
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A comparative examination of the strength of the US-Dollar often gives tangible insight into the direction of Gold (XAUUSD). The chart above indicates the expectation of a bullish price reaction from the demand zone
Usually, the Dollar and GOLD are negatively correlated. This means that the stronger the US-Dollar becomes, the lower Gold prices will be as many more investors will prefer liquid investments. Times of crises and the need to safeguard funds are the major exceptions to this.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.