Gold Testing Double Bottom Support – What Happens When It Breaks Below? - Forex News by FX Leaders

Gold Testing Double Bottom Support – What Happens When It Breaks Below?

Posted Monday, October 8, 2018 by
Arslan Butt • 1 min read

Gold trades under pressure as the dollar strengthened after China’s central bank raised its domestic policy to support the economy, amid anxieties that an escalating trade dispute with the United States could harm growth. Besides that, a better than expected US unemployment report is also underpinning the Greenback.

The technical side of the market remains neutral as the precious metal continues to trade above the double bottom support level of $1,195. The moving averages are suggesting a bearish trend in gold, while the RSI is stuck in the oversold zone. It signifies that bulls are looming around the corner and we may see bulls entering the market now.

Support Resistance
1198.15 1206.75
1193.41 1210.62
1184.81 1219.23
Key Trading Level: 1202.02

XAU/USD – Trade Plan

The idea is to stay bullish above $1,195 with a stop below $1,192 to target $1,202 today. Whereas, I will be looking for the sell positions below $1,202. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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