Gold Bearish On The Dollar – Black Crows Ready
Arslan Butt • 1 min read
The bullion market reacted exactly the same way as FOMC and its impact on Gold, which tossed and turned for the most part of the US trading session. Initially, it soared near to $1,336 and reversed later on due to the hawkish remarks from FOMC participants.
Gold/XAU/USD – Black Crows vs. Trading Range
The sellers are still dominating the market so it’s not about 61.8% Fibonacci retracement anymore as the market already violated $1,327.
Gold – Daily Chart
On the daily timeframe, the bullish trendline breakout at $1,326 also confirms the bearish sentiment of investors. Besides the candlestick pattern, “Three Black Crows” is also adding to the bearish bias. The investors will also be monitoring the US jobless claims at 13:30 (GMT) for further clues about Gold’s direction.
Gold will likely face a solid support near $1,315 and $1,310, whereas, the resistance prevails at $1,327 and $1,336.
Gold/XAU/USD – Trade Idea
For now, Gold is in the middle of an upper ($1,327) and lower range ($1,319) and in this scenario, trading it seems to be the best option.