Gold Consolidates in Sideways Range – Let’s Trade Choppy - Forex News by FX Leaders

Gold Consolidates in Sideways Range – Let’s Trade Choppy

Posted Wednesday, February 27, 2019 by
Arslan Butt • 1 min read

The precious metal GOLD is mostly steady despite a weaker dollar. Usually, gold takes a bullish turn in response to the weaker dollar but in the current scenario, it is behaving differently.

On Wednesday, the US dollar index weakened against a basket of six major currencies. The index fell to trade at 96.113 after dropping 0.4% overnight.

Most of the sell-off was triggered after Jerome Powell stated on Tuesday that growing risks and recent soft figures were unlikely to halt solid growth for the US. economy. He repeated that the Fed would remain “patient” on additional interest rate hikes.

On the technical side, gold is trading sideways in a narrow range of $1,332 – $1,321. In between this range, we will have a chance to do choppy trading by selling at the top and buying above $1,321. The breakout of this range will determine further trends in the market.

Gold – XAU/USD – Trade Plan

We are in a sell position below $1,327 with a stop loss above $1,330 and take profit at $1,322.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments