Type :
Bullish Rise
Key Levels:
Resistance : 51792
Pivot: 51152
Support : 50529
Preferred Case:
On the H1, price is moving above the ichimoku cloud and has broken out from descending trendline which supports our bullish bias that price will rise to the pivot at 51152 where the swing high resistance, 78.6% fibonacci projection and 61.8% fibonacci retracement are. Once we have upside confirmation, we would expect bullish momentum to carry price to 1st resistance at 51792 in line with swing high resistance and -61.8% fibonacci expansion .
Alternative scenario:
Alternatively, price may break pivot structure and drop to the 1st support at 50529 in line with the swing low support, 61.8% fibonacci retracement and 100% fibonacci projection .
Fundamentals:
With greater concerns about an impending US recession, following Chair Powell’s comments, gold price is likely to trade higher, giving us a weak bullish bias.
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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.