2023-06-16 • Updated
Don't give up on gold just yet! Despite some challenging times, the World Gold Council believes gold should remain a key asset in your strategic arsenal. Even as the Federal Reserve takes a breather from its aggressive monetary policy stance, it's still maintaining a hawkish stance. In fact, they're signaling the possibility of two more rate hikes this year. Joseph Cavatoni, the head market strategist for the Americas at the World Gold Council, emphasized the importance of this hawkish bias. So, please keep your eyes on gold as it navigates these near-term headwinds. It's always good to have a shiny backup plan in the ever-evolving world of forex trading!
The FOMC’s recent decision to pause the interest rate led to a continued bearish outcome on the US Dollar. Price action on the US Dollar is, however, at this time approaching another key price action area. The price action heading into the demand zone seems solid, so we must exercise caution before deciding. Nonetheless, the confirmations for a bullish reversal include the following:
Analyst’s Expectations:
Direction: Bullish
Target: 102.937
Invalidation: 101.604
XAUUSD is at a confluence zone between two resistance trendlines. Usually, this is a typical confirmation of strong resistance pressure on the price action. However, we have additional confirmations from the 50 and 100 moving averages in this case. Another crucial factor to consider is the descending array of the moving averages - a typical bearish trend indicator. Based on these and the supply zone, I would look forward to opportunities for a clear sell entry heading into the new week.
Analyst’s Expectations:
Direction: Bearish
Target: 1937.66
Invalidation: 1973.38
P.S.: The probability of this analysis playing out relies heavily on the observed price action from the US Dollar in the 4-Hour timeframe, following the sentiments above. If the US Dollar breaks below the highlighted demand zone, Gold will soar even higher. Do your due diligence to observe the charts properly for a reliable entry confirmation based on your preferred trading strategy.
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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