Quick Update on Gold Trading Signal – 50 EMA In Play
Arslan Butt • 1 min read
During the late Asian session, we decided to open a forex trading signal to buy gold with a target of $1,295. Unfortunately, the market missed our take profit by just a little bit and fell back after placing a high of $1,294. That’s why we decided to cash in manually. Gold is likely to offer us pretty nice choppy trading opportunities to pocket small but quick profitable trades.
Over the past few days, gold has been consolidating within a narrow trading range of $1,290-$1,301 as investors are eyeing the upcoming meeting between North Korea and the United States. Furthermore, the FOMC is also on the radar which is due next week. Clearly, the traders are feeling hesitant about the next move in gold. Do refer to FX Leaders’ recent update 3 Dates to Remember Before Trading Gold this Week for detailed information about these events.
Gold – 2 Hour Chart
On the 2 hour chart, gold has violated a sideways range at $1,295 and is now facing a strong support above $1,290. The violation of $1,290 will be a reason to enter a selling signal with a target of $1,280. The 50 periods EMA is signaling a bearish trend for gold, which means technically we should be looking for only selling trades.
Key Trading Level: 1297.23
Gold – XAU/USD – Trade Idea
Alright, so the idea is to stay bullish above $1,290 to target $1,295 with a small stop loss of $1,288. On the other hand, a closing of candles below $1,290 will signal a selling trade. Don’t forget to monitor ISM non-manufacturing PMI from the U.S. for quick 30/40 pips in gold.