Gold waiting to visit official target of bearish wave 15/2/2023

We adhered to intraday neutrality during the previous report due to the conflicting technical signals, explaining that the 1.0745 level represents one of the most important keys to the direction, explaining that the 60-minute candle sticking above the mentioned level might push the Euro-dollar pair to visit 1.0780, to record its highest level at 1.0804, so that the pair’s movements witnessed a clear divergence from the release of inflation news to settle below 1.0745.

From a technical point of view, by looking at the 4-hour chart, we notice trading stability below 1.0745, the pivotal resistance represented by Fibonacci correction 61.80%, and the 50-day simple moving average returned to pressure the price from above, stimulated by the negativity of stochastic.

The downside trend is the effect, targeting 1.0700/1.0680 as a first target, considering that breaking 1.0680 facilitates the task required to visit the official target for today’s trading session at 1.0630, and the decline may extend later towards 1.0585.

Activating the suggested bearish scenario depends on the pair’s exchange rate remaining below 1.0745 and most importantly, 1.0780, Rising above 1.0780, leading the pair to recover directly to retest 1.0840.

NOTE: Today, we are awaiting high-impact economic data issued by the US economy, “retail sales, the manufacturing index of New York State, in addition to the speech of the European Central Bank governor, and the consumer price index from the United Kingdom.

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.

S1: 1837.00	R1: 1865.00
S2: 1828.00	R2: 1880.00
S3: 1810.00	R3:  1891.00