Gold Weekly smells bullish


15 August, AtoZForex.com, Vilnius – Fundamentally gold weekly is turning bullish, however, technically we could see a retest of a major monthly support trend line. Nevertheless, having Friday’s Doji closing, further sentiment will be determined with Monday’s candle.

Fundamentally, the yellow metal appreciated against the dollar, as recent mixed US data dissolves a foundation for reiterated September Fed rate hike. To top it off, China has surprised the markets massively devaluing RMB and increasing worries for the Fed of impaired overseas developments.

Therefore, fundamentally gold shifts towards bullish sentiment.

Fundamentals to watch for next week:

  • Wednesday’s FOMC Meeting Minutes and CPI m/m.

XAUUSDDaily Gold Daily Timeframe, rebound from major support and Friday’s Doji candle

Technically, after failing to close below an upward sloping major monthly trend line, the precious metal has rebounded, broken throw the previous downward tilted daily linear regression channel and has finished the week by forming a Doji.

To confirm the indecisive day, RSI has halted on a neutral 50 level. We could expect a further move to be determined after Monday’s candle closing.

Considering market entries, a buy order could be placed at 1128 and aimed towards approximately 1140 level, a stop loss at 1124.5 could be used. With the broken 1140 level long position could be further prolonged from around 1146 to 1160.

Alternatively, with a bearish Monday’s close, the precious metal could be expected to test the major monthly trend line at approximately 1090/93 once more. However, the short position is a swing order type due to many minor resistance levels in the way.

Current pip count: +780

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