FX.co ★ ONE-MAN-ARMY | XAU/USD, GOLD

GOLD, H4

Gold price movements are likely to experience very high volatility in the New York session tonight. Apart from that, there are several US economic data releases which influence the outlook for the US Dollar. The FOMC meeting will be the main focus of market players and investors in determining actions to maintain Gold as a safe haven asset or switch to the US Dollar side. As we can see now, the price of Gold has experienced a decline below the psychological level of 2300. There was indeed an upward rally above the psychological level of 2400 but it failed to be consistent. Currently, the price of Gold, which is testing SMA 200 as dynamic support, appears to be bouncing up. The price pattern structure is already in a lower low - lower high condition amidst a weakening bullish trend. For example, if the price that is trying to rise does not succeed in returning above the 50 EMA, then the price trend may be able to pass the 200 SMA when it moves down. The Stochastic indicator parameter has crossed the oversold zone in the process of heading to level 50, thus indicating that the price increase is still continuing. Only when the parameter actually crosses at level 50 because it fails to reach the overbought zone means that the price decline will continue the previous price trend. The conclusion from what I have analyzed for Gold price movements, is that it may tend to move lower below low prices 2281 or SMA 200. Placement of the entry point for the SELL position can wait for the price to be corrected in the range 2304 - 2309. Confirmation after a crossing of the Stochastic indicator parameters at around level 50 or more safely in the overbought zone. For the target, it seems to use a Risk: Reward ratio of 1:1 according to the resilience of the capital currently owned.