Signal on Gold is just behind the corner.
Alpari Research & Analysis | Dec 03, 2017 09:22PM ET
Last week ended with quite a big bang, at least on stocks, but currencies also experienced some volatility. The latest tension came mostly from the politics but this week the macro calendar should play a big part in the market movements with the non farm payrolls on the front page.
Political uncertainty and the strong movements on the USD are for sure a very important drivers for the Gold. Here, since the second part of the September, we are moving in the sideways trend. The price is closed inside the symmetric triangle pattern (black lines) and we are slowly getting to an end, which should result with a breakout and a strong trading signal. Right below the lower line of the triangle, we do have a long-term up trendline (red) and a horizontal support (1267 USD/oz, green). Bounce from this area, should trigger a mid-term buy signal. On the other hand, breakout can be lethal here and can actually end the positive sentiment on this instrument for a long time.
Usually price moves the easier way, in the direction of the least resistance. We can see that on the bottom, we do have a combination of very important strong supports so the bounce, not the breakout, is more probable here. The new week starts on the front foot and the price tries to aim higher but everything is still opened.
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