"Canary" sounds the alarm, the future of gold is promising!
"Eagle-style hovering" suppresses gold, and the focus of the market outlook is on the U.S. economy
Last week (the week of September 18), gold's rebound was blocked near 1950. Week K recorded a long upper shadow star line, and the upward trend was still suppressed. The Federal Reserve's September interest rate decision "hawk-like hover", the US dollar was boosted again, with ten consecutive positive weeks; gold performed a surge and fell back, but still could not break through 1950.
Federal Reserve Chairman Powell pointed out that stronger than expected economic growth requires higher interest rates and will further raise interest rates if appropriate. In other words, solid economic conditions have given the Federal Reserve the confidence to act like an eagle. If the overall performance of U.S. economic data is better than expected, it may be difficult for gold to get out of the predicament since May.
However, once the U.S. economy goes into a downturn, the Federal Reserve will be forced to change its hawkish attitude under pressure, and gold is expected to gain popularity in the market.
Gold technical analysis: Caught in a choice, bulls are not without opportunities!
The weekly chart of gold shows that the price continued to rise after testing 1615 (point Y) in the week of September 26 last year. It hit a record high of 2082 (point A) in the week of May 1 this year. Then the market came under pressure and fell, 8 It fell to a low of 1884 on the 21st of the week and then tried to rebound.
The price is currently testing the downward trend channel since point A. If it effectively breaks through this barrier, bulls are expected to test the 1987 line pressure again. Once the pressure near 1987 is successfully broken, bulls will receive more encouragement, and the market may develop towards the 2050~2080 area.
The lower support is at 1884. If it falls below this level, more downside space will be opened. Pay attention to 1864. This position is an ideal convergence point for a potential bullish Gartley pattern, which may cause huge interference to the development of the market. If 1864 continues to fail, shorts may point to lower support levels such as 1848 and 1793.
(Source: Dailyfx-Jack Liu)