Busy Day For Dollar – How To Trade Gold Today?

In our morning brief, we discussed the economic data in much detail. In the absence of economic figures, the traders are paying closer attention to the speeches ahead. That's how I'm looking to trade Gold today!

Gold // XAUUSD – Technical View

On the 3-hour chart, the precious metal Gold has broken above the bearish trendline resistance at $1,294. The same resistance level is now working as a support area. We can see candlesticks pattern "tweezers top" which is a sort of bearish reversal pattern. If you are up to learn more about these patterns do check the FX Leaders Candlesticks strategies. 

Gold – 3 – Hour Chart – Bullish Breakout 

The hourly chart is consolidating in a narrow range of $1,293 – $1,296  and it's better to wait for the breakout before entering any position.  In addition to tweezers top, the leading indicators are also supporting a bearish bias. For instance, the Stochastic is stuck in the overbought range. That's why the break below $1,294 can lead the market towards $1,287.

Gold // XAUUSD – Trading Plan

Honestly, the market is totally depending on the speeches and consumer confidence coming out from the United States. Yet, $1,293 is a crucial trading level. Below this, Gold can target $1,287 whereas, above this Gold is likely to remain bullish till $1,298. Good luck.