Type:
Bearish Momentum
Key Levels:
Resistance: 1738.4
Pivot: 1721.1
Support: 1679.3
Preferred Case:
On the H4, with price moving within a descending channel and RSI moving in a descending trendline, we have a bearish bias that price will drop from pivot at 1721.1 where the pullback resistance is to 1st support at 1679.3 in line with 100% fibonacci projection and swing low support on the daily timeframe .
Alternative Scenario:
Alternatively, price could break pivot and rise to 1st resistance at 1738.4 where the 38.2% fibonacci retracement and swing high resistance are.
Fundamentals:
As major markets released weaker than expected PMI data, ringing alarm bells for further economic slowdown and increasing the risk of an unavoidable global recession, investors shift their attention toward Gold as a safe haven alternative.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.