7/1/2021
A key marker in gold kept gold's price from moving above a certain level and is now spelling bearishness on the metal. After a brief recovery from the bottom in the $1750s, gold gives investors a reason to short on the newest setup. On the fundamental side, US dollar sentiment is growing increasingly attractive on rising bond yields and good jobs data expectations. More insight on our sentiment on the USD can be found in another article here.
Our outlook
For at least this week, I am feeling more bearish on gold because of dollar strength in the short term. A key indicator for gold's success lies in a slowing jobs market which doesn't look like it's going to be doing that in the US. on top of that, gold's recent downtrend has been strong, and it looks like that could continue in the short term.
Trade Setups
XAUUSD
Gold could not break this key level on the 4H where there is a falling trend line that caused price to dip back under resistance. This could be a level for traders to look to enter or reenter their short positions on this pair.
A close look at gold on the 15 minute timeframe shows a possible retest on resistance near $1773. This could be a sign for traders to get back into more short positions and extend the downtrend.
Two surprises occurred this week from both central banks of Australia and Canada. Economists forecasted an unchanged discount rate, but the banks had other plans in mind. This caused a heavy positive move for AUD and CAD after reaction to the news. Here is what we are looking for in these types of pairs going […]
Over the past week, several news events paved the way of sentiment on monetary policy. Through the forest of mixed uncertainty, we can find the clearing of one asset that looks ready to take off. Gold has come back to a critical level, and it is up to smart money what happens next. EdgeFinder Analysis […]
Gold is up nearly half a percent today while USD down a third of one as of 10:18 am EST. As we wait for the upcoming and looming NFP numbers this Friday, we can assess the economic data we already have. EdgeFinder Analysis The stock market sighed in relief after the debt ceiling bill finally […]
