Talking Points
- Gold rallies into key resistance- pullback to offer long entries
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Gold Weekly
Gold Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- Gold approaches critical resistance confluence into 1155
- Risk for a pullback from here but trade remains constructive above 1133/34
- Breach targets resistance objectives at 1164 & 1170
- Subsequent resistance at the 200DMA 1179
- Interim support 1147 backed by bullish invalidation at 1133/34
- Daily RSI turn ahead of 40- constructive
- Momentum breach above 60 would be bullish
Gold 30min
Notes: Gold has rallied back into critical resistance after breaching the monthly & weekly opening range highs today. The immediate risk for a pullback off this level with interim support eyed at the confluence of the monthly opening range high & the 61.8% extension at 1147 backed by 1141 and our bullish invalidation level at 1133/32.
Bottom line: Expecting a pullback here but we’ll be looking to buy dips / long triggers while above the monthly opens with a breach of the highs targeting subsequent resistance objectives at 1164, 1170. Event risk is rather limited heading into the close of the week but keep we’ll keep a lookout for tomorrow’s final revision of U.S. 2Q GDP. Consensus estimates call for no change to the growth figures with personal consumption expected to be revised slightly higher to 3.2% and a weaker read on the releases could help further support gold in the near-term.
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Relevant Data Releases
Other Setups in Play:
- GBPJPY Reversal Setup- Short Scalps Eye 182
- USDOLLAR at Support Ahead of Critical Fed Meeting- All Eyes on Yellen
- AUDJPY Approaching Monthly Open- Range Break to Determine Scalp Bias
- Webinar: FOMC Setups We'll be Trading as Yellen Takes Center Stage
- GBPUSD Rebound Sets Up Clear Scalp Levels Ahead of Major Event Risk
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
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