Gold’s Sideways Range About to Break – Let’s Keep an Eye Out
During the late Asian session, gold prices trimmed lower as the U.S. dollar floated near multi-week highs around $1,4 while traders awaited.
During the late Asian session, gold prices trimmed lower as the US dollar floated near multi-week highs while traders awaited signs on monetary policy easing from leading central banks to shore up the global economy.
Just like other markets, GOLD is also on a muted mode as all eyes will be on the European Central Bank’s upcoming rate decision which is due later in the day. The ECB might cut rates at this meeting.
At the trade front, leaders from the US and China will continue in-person trade discussions to reach a positive result in the upcoming week.
The US Federal Reserve and the Bank of Japan would also meet in the upcoming week, and we expect the Bank of Japan to become more dovish by modifying the forward guidance
While on the technical side, gold faces strong resistance around 1,430 and bullish breakout of this level can drive sharp bullish trends in the market. On the flip side, support stays around 1,426 and 1,422 which marks the triple bottom on the 4-hour timeframe.
Support Resistance
1419.58 1430.79
1413.38 1435.81
1402.17 1447.02
Key Trading Level: 1424.6
I will be looking for another position in gold, perhaps a buying one, on the violation of 1,430. The idea is to target 1,442.
Good luck!
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