Gold Under Bearish Attack – Stronger Dollar Plays
Arslan Butt • 1 min read
Hard luck with our gold trading signal as it floated in profits for a long time during the U.S. session. Unfortunately, the market reversed to close it at stop loss. On Wednesday, we decided to open a forex trading signal to sell gold near $1,273 with a minor stop at $1,275 a target of $1,265. The volatility in the market knocked us out of the game. No worries, today we have another opportunity to catch up. Buckle up…
Last week, gold came out of a narrow trading range of $1,290- $1,301 due to an ease in safe-haven demand after North Korea and the United States came to an agreement. This, coupled with the Fed interest rate hike from 1.75% to 2% and the odds of two more rate hikes in 2018 are keeping the gold prices under massive bearish pressure.
Today, gold is facing strong resistance near $1,270 along with a support near $1,261. The violation of $1,261 can lead gold prices towards $1,257.
The 50 periods EMA is signaling a bearish trend of gold which means technically we should be looking for only selling trades.
Gold – XAU/USD – Trading Levels
Key Trading Level: 1270
Gold – XAU/USD – Trade Idea
At the moment, gold prices are in the middle of buying and selling level. So, I will be looking to wait for the prices to reach $1,257 to take a buying position, while the sell positions are recommended below $1,270. Good luck!