Gold short-term analysis – 04 April 2023
Source: www.tradingview.com
Further to our USDOLLAR article, we note that the gold daily chart has a strong inverse correlation to the USDOLLAR. The correlation coefficient between the two is a hardy -93%. I.e., gold is benefitting as the greenback comes under pressure.
The daily chart on the left, shows gold trading in its bullish channel between the upper blue and red bands. Moreover, its RSI is above 50 (green rectangle). The longer it maintains the bullish side of 50, the stronger the probability of further price appreciation.
The hourly chart on the right also has bullish signs. Its trend-following EMAs and momentum-based stochastic have crossed up (black ellipses). If the stochastic is able to make its way to the 80+ levels and hold (blue arrow), the hourly chart will be running with an underlying bullish momentum.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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