4-hour timeframe
Technical details:
The senior linear regression channel: direction - up.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - sideways.
CCI: 162.5807
The GOLD tool continues to rise in price against the general decline in the US currency. It should be noted that gold has been going up for a long time, and unlike the euro or the pound sterling. This is explained by the fact that in the past six months, traders have a very strong need for reserve currencies and assets, such as gold, the yen, and to some extent the franc. However, currencies of other countries are often subject to the influence of the economies of these countries and the political events taking place in them. Therefore, gold often remains one safe haven that is not tied to political or economic crises in a given country. Anyway, the results of the two-day Fed meeting supported the US dollar in the short term, but today gold has begun to rise again. This is explained by the fact that the Fed has repeatedly hinted at the imminent completion of the course on tightening monetary policy. Yesterday, it became known that next year only 2 rate increases are planned. Thus, the hegemony of the US dollar, which was observed in the last year, can finally be interrupted. If Donald Trump, who is very much hampered by the "expensive" dollar, will take the case, then the US currency may begin to fall in price on all fronts. Still, the currency can not constantly grow.
Nearest support levels:
S1 - 1253.91
S2 - 1250.00
S3 - 1246.09
Nearest resistance levels:
R1 - 1257.81
Trading recommendations:
The GOLD tool maintains a rising mood, so now buy orders with the last target of 1257.81 remain relevant. Color indicator Heikin Ashi 1-2 bars in blue color will indicate a round of downward correction.
It is recommended to open short positions in case the tool overcomes the moving average line with targets at 1238.28 and 1234.38. However, for this option now the dollar will need fundamental reasons.
In addition to the technical picture, you should also consider the fundamental data and the time of their release.
Explanations for illustrations:
The senior linear regression channel is the blue lines of the unidirectional movement.
The junior linear channel is the purple lines of the unidirectional movement.
CCI is the blue line in the indicator regression window.
The moving average (20; smoothed) is the blue line on the price chart.
Murray levels - multi-colored horizontal stripes.
Heikin Ashi is an indicator that colors bars in blue or purple.
The material has been provided by InstaForex Company - www.instaforex.com