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Talking Points

  • Gold rallies into key resistance- pullback to offer long entries
  • Updated targets & invalidation levels
  • Event Risk on Tap This Week

Gold Weekly

Gold at Critical Resistance- Long Scalps Vulnerable Sub 1155

Gold Daily

Gold at Critical Resistance- Long Scalps Vulnerable Sub 1155

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • Gold approaches critical resistance confluence into 1155
  • Risk for a pullback from here but trade remains constructive above 1133/34
  • Breach targets resistance objectives at 1164 & 1170
  • Subsequent resistance at the 200DMA 1179
  • Interim support 1147 backed by bullish invalidation at 1133/34
  • Daily RSI turn ahead of 40- constructive
  • Momentum breach above 60 would be bullish

Gold 30min

Gold at Critical Resistance- Long Scalps Vulnerable Sub 1155

Notes: Gold has rallied back into critical resistance after breaching the monthly & weekly opening range highs today. The immediate risk for a pullback off this level with interim support eyed at the confluence of the monthly opening range high & the 61.8% extension at 1147 backed by 1141 and our bullish invalidation level at 1133/32.

Bottom line: Expecting a pullback here but we’ll be looking to buy dips / long triggers while above the monthly opens with a breach of the highs targeting subsequent resistance objectives at 1164, 1170. Event risk is rather limited heading into the close of the week but keep we’ll keep a lookout for tomorrow’s final revision of U.S. 2Q GDP. Consensus estimates call for no change to the growth figures with personal consumption expected to be revised slightly higher to 3.2% and a weaker read on the releases could help further support gold in the near-term.

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Relevant Data Releases

Gold at Critical Resistance- Long Scalps Vulnerable Sub 1155

Other Setups in Play:

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  • USDOLLAR at Support Ahead of Critical Fed Meeting- All Eyes on Yellen
  • AUDJPY Approaching Monthly Open- Range Break to Determine Scalp Bias
  • Webinar: FOMC Setups We'll be Trading as Yellen Takes Center Stage
  • GBPUSD Rebound Sets Up Clear Scalp Levels Ahead of Major Event Risk

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForexcontact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

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