Bearish Engulfing in Gold - Is It Good Time to Sell?

EagleFX Team EagleFX

On Tuesday, gold is easing off a two-week peak, as the greenback trades around a one-month peak. The market risk-tone is still mildly positive despite the tension between Libya and Iraq. The reason could be the impacts of Friday's upbeat US data as well as the International Monetary Fund's (IMF) projections.

In China, due to a virus, four people have already died, and there were also reports about an Australian man who has also been recently tested for the human transmitted disease. This resulted in the creation of the Wuhan Pneumonia control center to stop further spread of the disease. Meanwhile, Wuhan has also ordered for active supervision of markets and public transportation stations to halt further spread of this virus.

There were also reports about the three rockets which arrived near the US military bases in Iraq, but no losses were reported. At the Sino-US front, finally, the US-China phase-two deal talks are expected to happen a bit later. This news came in after China's Global Times reported that China needs time to think about the impact of the trade deal.

Whereas, the market's risk-tone remains mostly directionless due to lack of headlines. On the other hand, the traders from America will come back in the market to take their positions after the long weekend and will observe the US President Donald Trump's impeachment trial on Tuesday.

Support	Pivot Point	Resistance
1555.07	1556.52	1558.18
1553.41		1559.63
1551.95		1561.29

Gold has formed a strong bearish candle below 1,559 resistance, and now it's looking to cross below 50 EMA. The RSI and Stochastics are suggesting bearish bias, and gold prices can drop until 1,549.

Gold - XAU/USD - Trade Setup

Gold Sell Below 1,554

Take Profit 1,550

Stop Loss 1,557

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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