21.12.202208:45 Forex Analysis & Reviews: Gold finds temporary resistance, Canadian CPI eyed

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Gold rallied in the short term and it has climbed as much as 1,821 yesterday registering a new high. As you already know, the bias is bullish but an upside continuation needs confirmation. After its rally, we cannot exclude a temporary retreat. The rate could come to test and retest the immediate support levels trying to accumulate more bullish energy.

As you already know from my yesterday's analysis, Canada is to release its inflation figures. The Consumer Price Index may report a 0.0% growth versus 0.7% in the previous reporting period. In addition, the US CB Consumer Confidence is expected to grow from 100.2 points to 101.0, while Existing Home Sales could drop from 4.43M to 4.20M.

XAU/USD Bullish Bias!

As you already know from yesterday's analysis, the bias remains bullish as long as it stays above the uptrend line and above 1,807. The price found resistance at the weekly R1 (1,820) and now it could come back to retest the 1,807 static support.

Consolidation above the downside obstacle signals that the rate attracted more bullish energy before resuming its growth.

XAU/USD Forecast!

Testing and retesting the 1,807 and staying above it could announce a new upside momentum. This scenario could bring new long opportunities. Still, an upside continuation could be activated by a new higher high. So, a valid breakout above 1,824 activates an upside continuation and brings new buying signals.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.