Forex Marketz Daily Forex News – Fully Markets Update
XAU/USD (1075.07)
Some points to consider in this article:
- The Yellow metal continues to trade higher after bouncing off the trend line support.
- Traders who are short sellers should look at the lower highs like $1,147.82.
- Trade strategy: Stand aside
The yellow metal, gold, has moved higher off the trend line support but is now consolidating hinting that buyers are running out of steam. This would keep the bigger picture and trend intact which is bearish. The move higher came off the trend line that connected the higher lows originating in July. Price action is now coming to a point where short sellers might want to consider entering trades as we are seeing resistance levels coming in from $1,140 and lower.
Short sale traders should set their first sites on the psychological level at $1,125 per ounce then $1,110. There is another key pivot to watch at $1,100 (higher low) to consider. Also, short sellers should look to $1,147.49/50 per ounce as an anchor (stop loss).
The alternative technical analysis for XAU/USD and its trade strategy sees a break of the lower high at $1,147.82 as a chance to go long. Traders should eye the levels at $1,155.48 and the key psychological level at $1,170 per ounce. There are also levels at the round $1,200 number and then the key pivot lining up at $1,250. These levels have, in the past provided both key support and resistance levels in the past.
My trade strategy is basically carry long positions. At this time, the average trading range (ATR) is too narrow to place a long or short gold trade. The yellow metal is also trading too close to a technical support level for a short sale. Without viable trade signals, I will opt to stand aside for a while longer as I am opting to remain flat with this commodity, XAU/USD.
