The demand for haven assets has faded away and the yellow metal gold fell from a 7-week high as the investors took profits ahead of the major trading day. Undoubtedly, the gold prices not only traded exactly as per our analysis report Gold Shine Seems To Fade, but also closed our forex trading signal in profit.
In the Asian session today, the gold dipped as investors looked ahead to economic events from China and Australia along with a trio of events, including an ECB monetary policy review, the UK snap general election and the FBI Director James Comey's testimony to Congress.
Forex Trading Signal – Idea
I'm hoping to wait for the economic events before sharing any forex trading signal, but for the sake of an idea: I'm looking to have a buy position above $1282, with a stop loss below $1287 and a take profit of $1293.
On the flip side, $1294 seems to be a good selling spot with a stop loss above $1298.
Gold Hourly Chart – 38.2% Retracement
Technical Outlook – Intraday
In our previous update on the gold, we recommended a sell position below 1294 as the previous metal held in the overbought territory. The gold tumbled to complete the 38.2% Fibonacci retracement at $1282.
Having said that, the precious metal has been already on its way to test $1282, the 38.2% Fibonacci retracement level. The 50- periods EMA is supporting a selling sentiment of traders.
In addition to lagging indicators, the leading indicators, including the Stochastic and the RSI, the metal has entered the selling region.
Fellows, don't forget, the UK elections, ECB Meeting and FBI testimony are likely to spread uncertainty and panic, which can increase the demand for haven assets. Keep following the strict money management to stay out of trouble.