Recalling our earlier update, Bullish EMA Crossover In Gold – Bearish Butterfly In Action, Gold traded nicely as our forecast predicted. The market remained to sell below $1,345 and today the Federal Chair Powell testimony is highlighted thus there will be very exciting movements to follow. Brace yourselves to trade quick trades in Gold.

Federal Chair Powell Testimonial In Focus  

In Washington DC today, Powell is due to testify regarding the Semiannual Monetary Policy Report before the House Financial Services Committee. 

Investors have been concerned about Powell’s potential remarks on inflation. The Federal Reserve System is expected to raise interest rates three times in 2018. If it requires an acceleration in inflation, the market will trade the Dollar more than three rate hikes on the sentiment.

Bullish White Swan

On the hourly chart, the yellow metal Gold has formed a bullish harmonic pattern called “bullish white swan” which has completed it’s C to D wave at $1,330. This pattern signifies potential for a bullish reversal.  

In addition to the bullish swan, I’m concerned about the bullish trendline supporting the metal above $1,331. 

Lastly, Gold has formed a tweezer bottom pattern near $1,332 right above the bullish trendline, a technique that often fails on the news.

Gold/XAUUSD – Trading Plan

Based on the technical reasons discussed above, we opened a forex trading signal to buy Gold above $1,332 with a stop below $1,329 and a profit at $1,337.

Good luck and stay tuned for live market updates!