Gold Violates Sideways Channel – $1,285 up next on Radar
Arslan Butt • 1 min read
Gold seems to offer a nice trading breakout setup as it has already come out of the narrow trading range of $1,295 – $1,305. The expectations of a U.S. rate hike this month offset support from trade war worries. Here’s an update on our forex trading signal…
Trade War Uncertainty
Trade discussions between the U.S. and China concluded on Sunday without reaching any deals, casting skepticism over the trade relations between the two countries. The boosted haven appeal is keeping gold on hold. Perhaps, investors are feeling more confident about the Fed rate hike especially after optimistic labor market report.
Gold – XAU/USD – Sideways Channel Breakout
During the previous week, I was looking to trade the breakout of $1,295 – $1,305 but the range survived. But this morning, the yellow broke out of the range on the lower side.
Gold Hourly Chart
At the moment, gold is holding right below a support resistance level of $1,295 and it’s likely to continue its’ bearish trend until $1,288 and $1,284. Today, the U.S. economy isn’t expected to release any fundamental, so most of the focus remains on the technical analysis.
Gold – XAU/USD – Trade Idea
Keeping the fundamentals in mind, we opened a forex trading signal to stay bearish below $1,292 with a stop above $1,294 and a take profit below $1,288. Keep following FX Leaders for more updates on trading signals.