XAUUSD Gold Forecast And Technical Analysis July 30th
XAUUSD closed the week lower, losing value for the third consecutive week. On Thursday, gold tested a low of 1,211 USD. If not for statements and tweets Trump made during that day gold prices could have fallen much lower.
Trump spoke about his dissatisfaction with the current monetary policy of the FED and followed by a tweet “the United States should not be penalized because we are doing well. Tightening now hurts all that we have done. The US should be allowed to recapture what was lost due to illegal currency manipulation and BAD trade deals. Debt coming due & we are raising rates. Really?”
Gold recovered from 1211 USD to 1234 USD. We have written that one tweet cannot change the trend. Gold needs more to talk about a trend reversal.
The market met with a new wave of selling after U.S. economic data showed the economy expanding by 4.1% in the second quarter.
The strong GDP reported could certainly strengthen the dollar next week thereby putting continued pressure on gold prices.
As we have written in our previous articles, we see limited downside risk for gold. But it is not the right time to buy now.
XAUUSD is trading below all main EMAs. A clear bearish pressure.
As seen on the chart, Gold made a bearish wedge breakout.
1222 is the first support. 1218 and 1.211 are the next target levels. We have a Black Swan Harmonic formation which is likely to be completed at 1208. This level can be used as a buying opportunity.
The current level is not a good long entry point. If you look for a short term long opportunity, you need to wait for the bullish breakout of the channel.
Trend reversal level is above 1250.
We keep some part of our short positions with SL at the break even.
We will send fresh entry alerts for the members as soon as we find an opportunity.
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DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money
XAUUSD 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