Gold has been trading inside of a range for the better part of a month, since it broke above 1660 and I have been looking for the opportunity to buy for a break above 1760. If you remember my buy stops at 1680 never got filled.

If we look at the chart after the breakout of 1660 Gold started to trade inside of a triangle formation and broke with it when it broke with the previous high at around 1723 before reaching the tp of this range at 1760.

I should point out that this range is comprised of 2 MASSIVE levels on the weekly, 1675 - 1760.

XAUUSD

Eventually when price hit the top of this range sellers (and profit taking by buyers) slammed price down and now we have reached the broken triangle again, a retest of it whilst Gold trades inside a wedge (orange formation) which points at an explosive continuation to the upside.

This level is the 1.618% retracement of the last leg up and the 61.8% retracement of the entire range.

A buy here would be too aggressive for me since the true pool of liquidity is around the 1700 level. In any case I will be very patient for this entry and probably will not miss it. If this scenario plays out this could yield at least a 1:4 RRR to first targets.

 


 

Subscribe to my daily analysis here

 

The interpretation and use of the tradeing signals and market analysis generated by ogfx is at the sole discretion of the customer, subscriber, member or trader. OGFX and its owners shall not be responsible for any claims in losses directly consequential of any trading activity.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

AUD/USD: Bears trying to sneak in below 0.6950 but bulls give a healthy fight

AUD/USD kick-starts the week with a gap-down, seesaws around 0.6930 afterward. A surge in the virus cases, hospitalizations in the US, escalating Sino-American tension question market sentiment. 

AUD/USD News

USD/JPY tracks other risk barometers to take the bids above 107.00

USD/JPY rises to 107.64, up 0.11% on a day, as Tokyo open welcomes risk-on mood On Monday. S&P 500 Futures, Nikkei 225 and the US 10-year Treasury yields print mild gains. Coronavirus worries, global ire against China remain on the table.

USD/JPY News

Gold: Buyers can ignore soft weekly open below $1,775

Gold prices offered a downside gap near $1,774 to kick-start with the week on a back foot. Pandemic fears, geopolitical tensions keep safe-haven buyers strong amid global policymakers’ fight against economic suppression.

Gold News

WTI bulls step up to the plate despite covid-19 risks

WTI is making tracks to the upside at the start of the week, rising some .4%. Last week's closing session had US futures in WTI fell back towards $40, with the August contract closing at $40.32, while Brent Sep closed at $42.80. 

Oil News

Macro considerations in the week ahead

The risk assets had been rallying since mid-March in anticipation of an economic recovery and fueled by the massive liquidity provided by central banks and the spending plans of governments. 

Read more

Forex Majors

Cryptocurrencies

Signatures