Bullish Cypher Driving Gold Bullish - Forex News by FX Leaders

Bullish Cypher Driving Gold Bullish

Posted Thursday, December 21, 2017 by
Arslan Butt • 1 min read

In our earlier update on Gold, we discussed the bullish trade setup that leads the Gold to hit our target at $1,268. Though it was supposed to get higher, but trading in the last fifteen days of December is always like this. Anyways, if you are looking to trade Gold, you need to be cautious of two things today…

Fundamentals Outlook

US final GDP q/q – At 13:30 (GMT), the Bureau of Economic Analysis will release the final gross domestic product of the US. It’s forecasted to be 3.3% vs. 3.3% in the month of September. This is one of the main economic measures that central bankers use to determine future interest rates.

In case of slower growth, the investors will expect a dovish monetary policy from the Federal Reserve. If the final GDP comes out at 0.4%, then we are going to see a bearish trend in the Gold. In contrast, if the GDP grows by 0.2%, then Gold is likely to target $1,269 today.

Technical View – Cypher Pattern

On the daily chart, the precious metal Gold formed a Cypher pattern with its fourth leg (C to D) at $1,240. This signifies a potential bullish reversal in the Gold. Traders, the Gold has already completed 50% Fibo retracements at $1,268/69.

Gold - Daily Chart

Gold – Daily Chart

That being said, we should closely watch the $1,269. The break above this level can push the Gold to $1,274 and even $1,278.

Gold // XAUUSD – Trading Idea

Gold is really mixed today. But for the sake of an idea, we should watch $1,264. Above this, Gold can stay bullish to target $1,269. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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