12.02.202010:28 Forex Analysis & Reviews: Goals for gold

Good afternoon, dear traders! I present to you the trading idea for gold.

So, yesterday, gold sank significantly in price after Powell's statement, exposing demand for the US dollar amid the coronavirus epidemic in China. On the other hand, the euro is now clearly an outsider, so investors have switched to the dollar and the US stock market which is a win-win situation for the SNP500 over the past year.

I have said more than once that gold is clearly overbought amid falling all currencies against the dollar, and we must look closely at the sale. However, there were no sufficient grounds for that within the framework of the "hunting for feet" strategy. But it's worth a little wait, since they will begin to slowly appear. Let's look at the chart where the American sessions are marked in green:

PS - support-resistance level - around which "amateurs of technical analysis" are currently playing.

NFP - Non Farm Payrolls (Nonfarm Payrolls) - US unemployment news last Friday that draws into the market a large number of traders who need to hide their risks somewhere.

In this idea of lowering the gold exchange rate, I was guided by the fact that yesterday's short-range initiative at Powell's speech, in addition to its fact, designated a stopping platform for buyers at the level of 1560, which coincides with the level of the "support-resistance" PS - for which technical traders like to hide risks. Thus, a stop hunt is declared under this level.

But this is not the only goal for sales:

I recommend lowering and paying special attention to the American sessions, because it was at this time that the gold volatility was highest.

Have a successful trading and control the risks!