Gold hit a two week high yesterday (September 21) following the FED rate announcement, and closed at 1335.18. Technically it broke up through and closed above the 20 DMA and the 50 DMA on the Daily chart. Although one strong candle does not an autumn move make, it was significant as it also closed above the 38.2 Fibonacci retracement level from the July high of 1374.89 and the August low of 1304.52.
The higher time frame Monthly chart remains bullish, whilst the Weekly chart is neutral and has support around 1315 and resistance at 1350. The Parabolic SAR remains negative and I expect some profit taking and a retracement from current levels, however a close above 1325 remains positive, following all the central bank announcements this week. Additionally, late September tends to be a strong time of the year for gold as the Asian wedding season starts in earnest. An entry at 1333.40 was triggered with Target 1 at the psychological 1350.00, north of the Bollinger band and the 61.8 Fib level at 1348.00 and Target 2 below the July high at 1366.00.
The 1315-1310 zone should provide longer term support and below that 1304 and 1300.
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.