Gold Makes Minor Downtrend Correction, Eyes On Trump's Speech
FxGrow | Jan 19, 2017 03:36AM ET
As expected, Yellen was at the right time, right place to lift collapsing US dollar this week. On Tuesday, US index bottomed at 100.23 after significant bullish opening on 2017 resulted in 103.81 peek. Yesterday, XAU/USD clocked a high 1217.71 after PM May's final determination for a divorce from EU, but gold couldn't withhold high levels, at 7 PM GMT, an hour before Yellen's appearance, gold levels started shaking downward, and Yellen contributed further through her speech where she laid out that US economy is positively stable and up to Fed's objectives.
As a result, the sacred yellow metal extended bear forces and sank to 1197.65 low. Gold levels still have two articular stations where final price destination will be determined. First, US data today scheduled at 1:30 PM GMT. Second tomorrow's global anticipated Trump speech and analysts are in confusion whether Trump will make an attack on US local sector as he did previously with pharmaceutical companies causing USD to collapse, or he will address US citizens with patriotic speech that could result in energizing USD.
Trend: Bullish Sideways
Key levels to watch: Daily Pp 1209.70
Resistance levels: R1 1208.34, R2 1220.20, R3 1231.45, R4 1242.99
Support levels: S1 1197.29, S2 1184.37, R3 1176.87, R4 1165.21
Remark: The fundamentals for gold levels are tied with today's US data at 1:30 PM but the main focus is on Trump's speech tomorrow. As for technical levels, a penetration for R2 strong level will fuel further bullish waves towards R3 and R4. Closing below S1 will favor selloffs and wash towards S3 level.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
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