Gold has remained inside the body of Tuesday’s bearish breakout with bears failing to generate momentum of the trend line break. Within this context is a bias for the sell side that has seen a bounce in late New York trade. We continue to see geopolitics as the main driver for Gold, the latest twist a Hamas offer of disarmament in exchange for a Palestinian state.
Resistance:
- 2341.09 – 20D Moving Average
- 2328.28 – Wednesday High
- 2309.51 – Intraday Pullback High
Support
- 2280.07 – Wednesdays Low
- 2265.49 – Intraday Consolidation Lows
- 2234.46 – 50D Moving Average
We have been unable to see a follow through to Tuesdays bearish breakout in XAUUSD. We did see a new low Wednesday though failure to generate momentum. Still we maintain an overall bearish bias for Gold taking a sell on rallies stance or on long wicks from resistances as an entry. A break lower of any intraday consolidation may also be seen as an excuse to jump short looking to take out 2280.07 en route to the 50D Moving Average. It would take a new flare up in the Israel-Hamas conflict for us to consider taking the buy side prior to a retreat to the 50D Moving Average.
