Good evening, dear traders! I present to you the trading idea for gold.
So, the fears around the Chinese coronavirus drove the price of the precious metal to the region of $ 1,580 per troy ounce. Gold was only more expensive in early January during the Iranian attack on US military bases in Iraq after the assassination of General Soleimani:
D1's price action picture:
Analysis of H1:
In this situation, priority is in sales, because a pinbar with a gap in the bottom remained on the highs yesterday. At the same time, the base of this pin-bar coincides with the mirror level of 1575, behind which now stands all the stops of buyers for Monday and part of the environment.
I remind you that gold should be traded exclusively at the American session (green areas).
The intrigue is that the sellers were not touched yesterday, and this is not very good for moving down. Therefore, I recommend 2 scenarios. The first is to work on the profit from sales on the fact of signals from smaller TF. The second one is for a false breakdown of 1586-1588, I recommend to catch sales with a take profit at the level of 1575.
If these events do not happen today, I recommend waiting for the news tomorrow night at the interest rate of US dollar, as well as the Fed press conference:
Have a successful trading and control the risks!
The material has been provided by InstaForex Company - www.instaforex.com