Gold Hits Two Take Profits in a Row – Are you Ready for the Next? - Forex News by FX Leaders

Gold Hits Two Take Profits in a Row – Are you Ready for the Next?

Posted Friday, July 20, 2018 by
Arslan Butt • 1 min read

The demand for safe-haven assets dampened after the Federal Reserve’s Chairman reinforced expectations of the dollar’s long-term strength. As we know, the rising U.S. interest rates tend to support the dollar and make gold more costly for other holders. Which is why the dollar took a bearish ride. Fortunately, we were able to capture movement both times. Here’s what to expect next…

Gold – XAU/USD – Technical Outlook

Technically speaking, gold is still in a strong bearish trend. Zooming out the 4- hour chart, gold is trading below 50- periods EMA which is likely to become a hurdle somewhere around $1,223.

Recalling our earlier update, Gold Violates $1,222 – Quick Update on our Trading Signal, we discussed how gold has come out of the descending triangle pattern and is likely to continue its selling trend until the next $1,212. The yellow metal traded inline exactly with the forecast.

Gold - Descending Triangle Breakout

What’s next?
Since we don’t have any major event in the United States, we need to rely on the technical indicators. At the moment, gold is testing a solid resistance level of $1,224 on the 3-hour chart and the violation of this can bring more bulls in the bullion market. Gold can gain support at $1,212 and we may see a tug of war between bulls and bears in this range.

Support Resistance
1214.32 1227.62
1210.22 1231.72
1203.57 1238.37
Key Trading Level: 1220.97

Gold – XAU/USD – Trading Idea

Traders, I will closely monitor $1,224 as gold can stay bullish above this with a target of $1,229 and bearish below $1,224 till $1212. Good luck!

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