News & Analysis
Eightcap CFD technical insights: Gold short-term technical strength overall downtrend remains
Looking at Gold we’ve seen a buyer reversal since the last low was hit on the 16th of AUG. Sellers failed to hold the low as buyer’s fought back to form a failed low. This lined up with a break in Lira selling and news that China and the U.S had returned to the negotiating table. To end the week Fed Chair Powell continued the current pressure on the USD confirming the current rates outlook.
Technically Gold continues to trade in a corrective pattern, buying exploded on Friday price closing just over twenty dollars higher confirming a lower high. Price set up a new inside higher high and broke its fast downtrend line by session end. On the short term, good looking bullish signs but traders should keep in mind the current resistance zone and Friday’s high that lines up with the 23.6 fast Fibonacci retracement point. A fail confirms an overall lower high. Bulls will be looking for further buying and a break of Friday’s high to show momentum remains in the bull camp. If we see a new extension higher sellers may return from 1215.50 – 1223. The next Fibonacci retracement point 38.2% is at 1238.80, but for now, buyers have some work to do to confirm Friday’s data push by beating Friday’s high to signal a new leg up.
Short-term bias suggests higher prices with a possible challenge at Friday’s 1208.47 high.
Good Trading from Eightcap.
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