Noor Trends News, Technical Analysis, Educational Tools and Recommendations
A bearish trend dominated gold prices to touch the awaited weekly target at 1615, recording its lowest level during the last session’s trading of 1616.
Technically: Gold’s movements witnessed a bullish rebounding tendency to the upside as a result of touching the main support of the current trading levels represented by the target 1615 and hovering around the highest level during the morning trading of the current session 1638, with careful consideration on the chart, 4 hours interval. In addition, we notice the clear positive crossover signs on the indicator Stochastic is motivating it to get more momentum. On the other hand, the 50-day simple moving average continues to form an obstacle in front of the price.
With technical signals conflicting, we prefer to monitor the price behaviour to be in front of one of the following scenarios:
To continue the decline, we need to witness a clear and strong break of the 1622 level, and from here, the probability of touching 1615 and 1606, respectively, and losses may extend towards 1597.
To get an upward bias requires intraday cohesion above 1647, and from here, we may witness a retest of 1565 and 1660. The price behaviour of gold must be monitored well around 1660, the 23.60% Fibonacci correction due to its importance for the general trend on the intraday basis, and its breach extends the gains towards 1672 and 1677, and the gains may extend later to visit 1687 .
Note: Employment data, Unemployment rate and average wages are due today in the USA and they have a high impact, and we may witness price fluctuations at the time of the news release.
Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.
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