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XAUUSD Gold Forecast: Gold Prices Fall Following Powell’s Comments

XAUUSD Gold Forecast: Gold Prices Fall Following Powell’s Comments

Fundamentals: 

CNBC

The FED Chairman Jerome Powell failed to shed any new light on the pace of interest rate cuts later in the year.

Speaking at an event in New York, Powell struck a relatively neutral tone on the U.S. economy and monetary policy; he reiterated his outlook for slow but positive growth this year, despite rising crosscurrents in the global economy.

Federal Reserve Chairman Jerome Powell stresses the central bank’s “independence” in a speech.
His warning about policy caving to “short-term political interests” comes amid intense pressure from President Trump to cut interest rates.
He also stresses the importance of policies that will “sustain the expansion.”

“Since the beginning of the year, we had been taking a patient stance toward assessing the need for any policy change,” he said. “We now state that the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labour market and inflation near its symmetric 2 % objective.”

However, he emphasized that politics won’t be a consideration as the Fed is “grappling” with the idea of a rate cut.

Gold’s rally comes after Chairman Jerome Powell said last week the Federal Reserve would “act as appropriate” to keep the current economic expansion going, which upped the odds of the Fed cutting rates in July. Gold — seen as a global safe haven — also reacted positively to increasing geopolitical uncertainty after President Donald Trump signed new sanctions on Iran on Monday, days after Iran shot down a U.S. drone.

XAUUSD ended the day at 1.411 and continued to fall during Asia Session,

Technical Overview:

Date: 06-26-2019

Late Asia/ Pre -London

H4 Chart Overview is updated prior to London and New York Opening.
This is just a technical summary of the said pair/instrument on the mentioned chart timeframe.

Current Value: 1405

Technical Indicators

RSI(14) 55.839 Buy
STOCH(9,6) 50.174 Neutral
STOCHRSI(14) 0.000 Oversold
MACD(12,26) 14.620 Buy
ADX(14) 55.862 Neutral
Williams %R -68.154 Sell
CCI(14) -48.3878 Neutral
ATR(14) 10.9679 Less Volatility
Highs/Lows(14) -3.0464 Sell
Ultimate Oscillator 45.065 Sell
ROC 0.564 Buy
Bull/Bear Power(13) -9.7119 Sell
Buy: 3 Sell: 4 Neutral: 3
Summary:SELL

Moving Averages:

SMA 20: 1409.87 / SELL

EMA 50: 1382 / BUY

SMA 100: 1353 / BUY

SMA 200: 1318 / BUY

The first Moving Average Resistance: 1421 SMA 5 H4

The first Moving Average Support: 1395 SMA 34 H4

Summary: Price is above all main Moving Averages but entering into negative territory in smaller chart timeframes. H1 Chart Bearish Golden Cut is developing.

Bollinger Bands Readings

 

Bollinger Bandwidth(20): 48.0078

Bollinger Bands %b(20:2): 26.860

Summary:  Price is in the lower channel of the Bollinger Bands of negative territory. Headed North to test the lower BB.

 

Ichimoku Readings:

Senkou Span A: 1365

Senkou Span B: 1356

Tenkan-sen Kijun-sen: Neutral

Ichimoku Summary: Price is below Tenkan-Sen and above Kijun-Sen. Kijun-Sen Support 1398. Indecisive Area.

Support / Pivot / Resistance

 

S3 S2 S1 Pivot Points R1 R2 R3
Classic 1384.06 1396.28 1403.41 1415.63 1422.76 1434.98 1442.11
Fibonacci 1396.28 1403.67 1408.24 1415.63 1423.02 1427.59 1434.98
Camarilla 1405.23 1407.00 1408.78 1415.63 1412.32 1414.10 1415.87
Woodie’s 1381.52 1395.01 1400.87 1414.36 1420.22 1433.71 1439.57

 

Murrey Math Calculations ( Support / Pivot / Resistance ):

Intraday Readings on H1 Chart

Upside Levels:  1414.06 MM 5/8     1421.88 5/8 Major Support-Reverse   1429 MM 6/8 Weak,Stall, Reverse

Downside Levels: 1405 MM 4/8 Major Support  1398.27 MM 3/8 Bottom of the Trading Range   1390.21 MM 2/8

Summary: Bearish Below 1414. H4 Closings below 1406 will send the price 1398 and 1390.

Divergence ( Regular / Hidden) 

RSI: None

MACD: None

OSMA: Bearish Divergence 4 candles

STOCHASTICS: Bearish Divergence 3 candles

AWESOME: None

CCI: Bearish Divergence 3 candles 

 

Candle Patterns ( Confirmed Only )

Nothing Confirmed

Breakout and Harmonic Patterns

Bearish ABCD: Confirmed, Activated, TP3 Reached

Bullish Bat M30: Entry 1406

Bullish Bat M30: Entry 1396

Summary: We may see a retracement towards 1409 and 1414. The bearish move will continue as long as XAUUSD stays below 1414. Targets of the Gold Prices will be 1398 and 1390.

 

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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money

Gold Forecast: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility

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