Quick Profits in Gold – Get Ready for the 2nd Entry
Arslan Butt • 1 min read
The precious metal gold traded exactly as we suggest in our forex trading signal in Gold Speculators Trimmed Exposure – FOMC Ahead! It was a phenomenal trade idea to stay in buying above $1259/60 with an initial target of $1274 and then $1279.
Today our forex trading signal on the yellow metal gold closed at take profit and helped us gain green pips. The Swiss National Bank (SNB) decided to leave its monetary policy expansionary, with the intention of stabilizing consumer prices and boosting economic activity. SNB left the interest rate on sight deposits at –0.75%, while on the three-month LIBOR is unchanged at between –1.25% and –0.25%. Gold showed a muted impact because there was no change in policy.
In the US session, the gold is likely to attract attention upon the release of several economic events, specifically, the unemployment claims, Philly Fed Manufacturing Index and Industrial Production m/m. Here's a rough trade idea for the gold.
Forex Trading Signal – Idea
I'm focusing on the $1259/60 for a sell position below this level until $1254 & $1248. While on the upper side, the target is $1274 and $1279.
Gold – 4-Hour Chart
Technical Outlook – Intraday
The $1259/60 has come under the spotlight for the second consecutive trading day. On the 4 -hour chart, the yellow metal has a formed a triple bottom pattern which is extending a substantial support at $1259/60. In addition to this, gold prices have also completed 38.2% Fibonacci retracement at $1259/60.
On the same 4-hour chart, we can see the price has dropped below 50- period's exponential moving average which shows traders' bearish sentiment. Lastly, the RSI has also crossed below 50, supporting investors' bearish bias.