Gold Shows Indecision After 3 Up Days
XAU/USD - H4
North American traders seek the US Dollar, which puts pressure on XAU/USD, following the de-escalation in US Producer Price Index and Mr. Powell's focus on employment.
After three profitable days, it shows exhaustion and becomes vulnerable to Monday's lows (1,812), but the downside has multiple levels that can provide support. Most notably, the 200Day and 200H4 EMAs (in the broader 1,795-76 zone), which however, do not appear ready to be challenged.
Despite current struggle, XAU/USD remains in control and has the ability to extend its advance, even if a pullback may be required. As such, it can push again for the key 1,829-34 area, that will open the door towards 1,859.
At this stage, market sentiment is mixed and either side seems to lack conviction to determine the next leg, although fresh impetus may be found in Wednesday's US CPI Inflation data.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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