Gold saw demand kick in early in European trade buoyed by demand from buy on dippers and the persistent geopolitcal tension. Poor releases out of the US merely served to underscore this bullish tone as it argues the potential for an early rate cut. Still the Fed is not known for reacting to single data points and we do have US jobs numbers still on Friday which could be the more critical data to advise on the need for an easing policy sooner than later.
Resistance
- 2387.70 – Right Shoulder
- 2379.74 – Intraday Consolidation Highs
- 2369.40 – Daily Resistance
Support
- 2355.05 – Intraday Consolidation High / Low
- 2340.13 – 23.6 Fib Retracement of Rally from 2/14
- 2319.28 – Intraday Consolidation Low
Given the break of a Symmetric Traingle we cannot ignore the potential for XAUUSD to move higher. A push past the 2369.40 Daily Resistance level may be seen as an entry bulls though we would need to push past 2387.70 to invalidate our big picture bearish reversal head and shoulder. Immediate bias for us will be for the wider consolidation to continue looking for shorts on a break of the 2355.05 support considering overbought intraday stochastics, long wicks in the 4H charts and strong resistances ahead.
