empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

27.05.202218:09 Forex Analysis & Reviews: Gold crashes as USD rallies

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 is trading in the red at 1,851.93 at the time of writing far below 1,862 today's high. It has dropped by 0.56% from today's high and it seems very heavy after failing to confirm an upside continuation.

The yellow metal is dropping like a rock as the Dollar Index has managed to rebound after its last sell-off. USD's appreciation forces XAU/USD to drop. Fundamentally, the US data came in mixed, Core PCE Price Index rose by 0.3% matching expectations, the Goods Trade Balance came in at -105.9B versus -114.8B estimates, while the Revised UoM Consumer Sentiment dropped unexpectedly from 59.1 to 58.4 points. In addition, Personal Income came in worse than expected, while Personal Spending reported better than expected data.

XAU/USD Uptrend Line Retest!

Exchange Rates 27.05.2022 analysis

XAU/USD rebounded after failing to take out the 1,841 support. Now, it has tested and retested the broken uptrend line signaling that we may still have a larger drop. As you can see on the H4 chart, the price registered only false breakouts with great separation signaling exhausted buyers.

Failing to stay above 1,853 may signal a potential sell-off towards the 1,841 key support. In my opinion, an upside continuation could be signaled by a new higher high, if the price jumps and closes above 1,862.

Gold Forecast!

A larger drop and a new selling opportunity could be confirmed by a valid breakdown below 1,841. So, only a new lower low could activate a larger drop and could help the sellers to catch new short opportunities.

Ralph Shedler
Analytical expert of InstaForex
© 2007-2024

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.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off