European Session Gold keen observing "sensitive US dollar"

XAUUSD Technical Overview:

Pivot: $1197.10

Day Trading Range: $1194 - $1214

Key Resistance: $1204.45 - $1207.29 - $1212.66 - $1218.89

Key Support: $1197.10 - $1194.22 - $1191.45 - $1189.56

Technical Indicator:

RSI: RSI lacks downside momentum, trading above 50 level.

Moving Average: SMA200($1198.94) & SMA100($1200.48) strong support for xauusd today.

Technical Trade Idea:

Most Likely Scenario: long positions above 1197.10 with targets at 1205.50 & 1207.56 in extension.

Alternative scenario: below 1197.10 look for further downside with 1194.50 & 1189.45 as targets.


Overall, Gold remains in a sideways consolidation between 1214 and 1182 but is making the case for a break higher according to the bullish symmetrical triangle. For bulls to get back control, whereby the market is heavily short of gold and to reconsider its positioning, (net speculative short positions, or bets an asset’s price will fall, in gold, are up 275% year to date), then they need to get and hold above the 50-D SMA at 1211 first, then 1214 which is resistance and then the 200-W SMA at 1233 will need to be challenged. A retry of the downside now should target 1146/20 monthly levels.

Fundamentally, the intensifying U.S.-China trade dispute is the driver ahead of next week's FOMC meeting. However, we have only seen modest moves in the greenback so far and markets, in fact, took the trade headlines in their stride. Even with President Donald Trump announcing $200 billion tariffs against China on Monday that provoked an expected and swift retaliation from the nation, fear has yet to really show up in the market and the US benchmarks were higher with the DJIA making another all-time record high.

Thanks
YoCryptoManic
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