Engulfing Bullish – XAUUSD

 

Tuesday will be an interesting day for determine how strong (or weak ) the dollar are.
The US consumer confidence is forecasting 78.60 from 78.10.
A Positive result will be a good opportunity to short Gold.

According to Trading Central the downside is the major trend.

"Gold spot Intraday: the downside prevails.

Pivot: 1328

 

Our preference: Short positions below 1328 with targets @ 1296 & 1279 in extension.
Alternative scenario: Above 1328 look for further upside with 1342 & 1350 as targets.
Comment: the immediate trend remains down and the momentum is strong."

Technically, the chart shows a bullish pattern which is good if you are wishing to long gold before to short it again in an appropriate time.
Last week, the yellow metal dropped due a very strong USD. Perhaps, we shall consider more drops, but it is interesting to observe such pullbacks too.

 


Pattern: Bullish
Pivot: 1324/oz and 1328/oz
Stoch: Oversold
Main Trend: Bearish
Main Resistance zone: 1324/oz
Main Support zone: 1308/oz

 

Main events for Tuesday:


US Consumer Confidence
US New Home Sales (MoM)
US 4-Week Bill Auction
ECB President Draghi's Speech
German IFO – Current Assessment

igor.titara@hotmail.com'
Igor Titara

Igor Titara is a Forex trader and a market analyst. He's in the industry for 2.5 years. Forex remains his major interest and profession. He holds a Degree in Mathematics&Statistics by Federal University of Ceará or UFC. His work includes fundamental and technical reports on various currency pairs, gold/silver. His technical analysis features bullish and bearish patterns, supply and demand zones, volume, breakouts and Fibonacci levels.

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