Gold initially spiked up following the release of slightly weaker than expected CPI data encouraging dollar bears and inflation watchers to call foe an easing. Eventually though Fed Chairman Jerome Powell in his press conference sighted the release as a single data point not necessarily signalling a shift in trends. Note that expectations are now calling for a single rate cut from the Fed this year well down from a three rate cut forecast from two months back.
Resistance
- 2387.70 – Right Shoulder
- 2353.16 – Intraday High / Low
- 2341.65 – Wednesday High
Support
- 2310.45 – Intraday Consolidation Floor
- 2286.76 – June Low
- 2272.18 – Fib 38.2 Fib of rally from 2/14
XAUUSD pulled back to its SHS neckline closing with a long wick Wednesday. Indicator wise we have 4H charts showing a bearish divergence . Overall our SHS breakout remains intact with yesterday’s move taking us to a better entry. At this point long wicks from the hourly charts wil have us looking to reenter shorts with immediate objective at 2286.76. We could also use a break of 231045 as an entry point provided we have a convincing breakout candle in the hourly charts.
