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Gold On The Edge Of Turning Bullish Ahead Of FOMC Statement

Oct 11 2017, 07:49 AM (CDT) |
FxGrow Daily Technical Analysis – 11th October, 2017
By FxGrow Research & Analysis Team

Gold On The Edge Of Turning Bullish Ahead Of FOMC Statement

Gold has surged $34 since Friday, and clocked 1294.30 high yesterday, giving positive signs of trend reversal and turning bullish in case the precious metal managed to close above 1295 in the coming days. On the other hand, renewed tension between USA and NK is attracting safe haven buyers pushing gold higher. Add to that, the DXY continues to show weakness with 92.87 low today giving XAUUSD more chance to seek higher price.

Technically, on daily chart, gold has closed above 10-EMA for the third consecutive session and we can notice that daily 5-EMA crossing below with 10-EMA. On H4 time frame, gold rallied from 1260 and closed first 1278, then closed 1288, finally yesterday, gold closed above 1292. This is an additional early sign giving that H4 closing time is going on a higher H4 levels.

Today, as FOMC statement will be released, we will see how gold behaves and closes on daily and four hours time frame. In case gold tested 1280+ support and managed reject these prices, then market should expect further rallies extended above at 1295 and 1300+. In case gold showed deeper retracement and closed below 1278, it is an indication that the precious metal has entered the old range between 1200 and 1296 and recent rallies were a correction phase preparing for depper dips aimed at 1260+/-.

Technical Overview XAUUSD

Closing price: 1287.70

Trend: Sideways / Bearish

Resistance levels: 1291, 1295, 1299

Support levels: 1288, 1282, 1279-77

Trend reversal: 1295.20

Comment: The market is showing a correction, trying to retrace for a test of key 1295.20* resistance and challenge for a bottoming turn. Trade may again try to foster rallies, but trade capped by 1295.20* will retain bear forces, likely easing for defensive congestion along 1282.00. A close under 1277.70* alerts for secondary selloffs against Friday's spike.

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Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

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