Gold Violates Bullish Bat Pattern – $1,307 On The Cards
Arslan Butt • 1 min read
What’s up, traders. Most markets in Asia are closed, and the trading activities may remain light during the European session as well. However, the U.S. session may offer some action in the wake of high impact economic events as discussed in the May 1 – fundamentals brief.
The Federal Reserve (FED) officials are scheduled to meet today (Tuesday) and Wednesday for a regular policy meeting. The central bank is widely expected to keep the rates on hold until July. But, investors will be watching the FOMC meeting for hints of a rate hike in June.
Gold is having a hard time holding the $1,310 support, which isn’t surprising since it already violated the bullish bat pattern. Now, it’s trading exactly in line with our forecast shared in Gold Trades a Bullish Bat Pattern – Is It Going To Violate Today?
The risk on sentiment, rising 10 years U.S. bond yields, meeting between the U.S. and China delegates and positive forecast of the U.S. labor market report is hiking the demand greenback while diminishing the appeal for haven assets.
Looking at the 4-hour chart, gold is trading below the 50- period EMA (exponential moving average) which signifies a bearish trend. Since the bullish bat pattern is already violated, $1,307 is the next potential target for gold.
Gold – XAU/USD – Trading Plan
So, the idea is to stay bearish below $1,317 and bullish above $1,305 to make quick 50/60 pips today. Good luck!