Gold Technical Analysis | Gold Trading: 2015-03-03 | IFCM
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Gold Technical Analysis - Gold Trading: 2015-03-03

Gold chart

Today let’s consider XAUUSD on the H4 chart. In February gold hit the 5-month low over expectations of an early Fed rate hike for the first time since 2006. Some market participants deem that this might be done in April. However, last week the Fed Chair said there was no need to raise interest rates that early. There is no specific timing and this issue will be discussed on a regular basis at meetings. This appeared to be the reason the majority of investors decided that the interest rates might be raised only in June. After that the gold price stabilized above $1200 per ounce. We don’t rule out the possibility of gold to advance due to high demand in China and India. Note that the US dollar index hit the 11-year high. If it slides, that might also provide support for precious metals.

XAU/USD

XAU/USD finished the four-week downtrend, breaking the corresponding resistance level. Now it shows weak signs for bullish hopes and remains in the price channel. RSI-Bars showed bullish divergence: the latest bars are located below 50. This may be a sign that it is too early to go long. We do not exclude the bullish momentum being developed further after the breakout of the upper price channel boundary that coincides with the DonchianChannel upper level and the latest fractal high at 1223.3: this level can be used for placing a pending buy order. Stop loss is to be placed at the lower border of DonchianChannel that coincides with the lower border of the price channel and the latest fractal low, which can currently act as the support line at 1195.4. After pending order placing, Stop loss is to be moved every four hours near the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets Stop loss level without reaching the order, we recommend cancelling the position: market sustains internal changes which were not considered. For the trading volume data please click here.

PositionBuy
Buy stopabove 1223.3
Stop lossbelow 1195.4

Dear traders. For the detailed report of the strategy based on analytical issues of technical analysis click here.


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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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