Gold Consolidate In Narrow Range - Get Ready to Catch Breakout! - FX Leaders News

Gold Consolidate In Narrow Range – Get Ready to Catch Breakout!

Posted Friday, October 19, 2018 by
Arslan Butt • 1 min read

The safe haven asset GOLD held steady as a drop in Asian shares was compensated by a solid dollar, which firmed after minutes of the Federal Reserve’s September meeting bolstered expectations of a hawkish US monetary policy.

The FOMC policymakers are united on the need to boost borrowing costs further, minutes from their most recent policy meeting showed, boosting expectations the committee will stick to its hawkish stand on boosting interest rates.

The RSI is trading below 50, which is a strong indication of the bearish bias of traders. Most importantly, gold is stuck in an asymmetric triangle pattern which is supporting it near $1,221 along with a resistance at $1,227.

The bullish breakout at $1,227 can lead it towards $1,232 and $1,238. Whereas, the market can stay bearish below $1,227 till $1,221 and $1,218.

Support Resistance
1219.51 1231
1213.38 1236.36
1201.89 1247.85
Key Trading Level: 1224.87

Gold – XAU/USD – Trading Idea
The idea is to stay bearish below $1,227 with a stop above $1,231 and a take profit of $1,224. Whereas buying will be preferred above $1,224. Good luck!

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About the author

Arslan Butt is our 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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