For Traders

Analytical Reviews

06.06.202223:48 Forex Analysis & Reviews: Gold: new bearish pattern before US data

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.

The price of gold rebounded a little in the short term but the downside pressure remains high as the Dollar Index maintains a bullish bias. Later, the US data could be decisive in the short term. XAU/USD is trading at 1,837 at the time of writing.

The US PPI is expected to report a 0.4% growth while Core PPI may register a 0.3% growth. In addition, the Unemployment Claims indicator is expected at 200K in the last week. Positive US figures should lift the greenback and could force the yellow metal to drop.

XAU/USD Flag Formation!

As you can see on the h1 chart, the instrument found support on the weekly S1 of 1,832 and now it has turned to the upside. The price action developed a flag pattern which could announce a downside continuation.

Technically, the weekly S1 (1,848) and the black downtrend line represent strong upside obstacles.

XAU/USD Forecast!

Taking out the flag's support and making a valid breakdown below the weekly S2 (1,832) is seen as a selling opportunity.

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.