The 4H gold chart shows the precious metal consolidating in what may be a wedge pattern. The market when seen in the perspective of the 4H chart is neutral because it is near the 200 simple moving average, and the RSI is near 50. The short-term bias however is bearish since the RSI did just kiss 30, and the market has been making lower highs and lower lows. IF the market is to regain bullish bias, it would need to break the current 18201825 resistance then above 1840.50-1840.60 area, thereby making the first higher high in September. Also, the RSI reading should break above 60, because in a bearish market the 60 level is resistance in the RSI. The 1800 psychological as well as actual support can help confirm the bullish case if it remains support. Then if the RSI pushes further above 70, price action is probably also pushing towards 1910-1920 highs. The bearish scenario should be considered if the 1800 support fails, and we see it become resistance. A push down towards 1750, 78.6% could be the target for the next downswing in the current wedge. Below 1749-1750, the 1702.50 low is in sight.
RISK DISCLAIMER: By using this web site you agree to its terms and conditions. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Forex (or FX or off-exchange foreign currency futures and options) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. Past results are no indication of future performance. Information contained this web site is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
