On the sidelines at the moment - anyone seeing different?
Further selling was seen in the gold market during the course of yesterday’s sessions, on the back of continued dollar strength. In consequence to this, the daily candles are now seen trading within shouting distance of demand coming in at 1108.2-1117.8. Despite this, up on the weekly chart, the unit shows room to continue past the above said daily demand to a weekly demand area drawn from 1071.3-1097.2.
Turning our attention to the H4 chart, yesterday’s action saw the yellow metal whipsaw through demand at 1125.1-1132.9. Bids around this area have very likely been severely weakened by this latest move, thus further downside to H4 support at 1110.0 may be seen. Although 1110.0 is positioned within the aforementioned daily demand area, the selloff currently being seen in this market, which is on course to close in the red for the sixth consecutive week, may be too strong to consider buying from here.
Our suggestions: Our desk has reported no interest in buying from the current H4 demand, due to buyers likely weakened around this area, and the fact that both weekly and daily price look set to extend lower (see above). Buying from the H4 support at 1110.0, as mentioned above is also somewhat tricky.
Right now, according to the higher-timeframe picture, selling is the better option. However, with the current H4 demand still in play and the top edge of the daily demand area seen nearby at 1117.8, we would be just as cautious selling at the moment.
Turning our attention to the H4 chart, yesterday’s action saw the yellow metal whipsaw through demand at 1125.1-1132.9. Bids around this area have very likely been severely weakened by this latest move, thus further downside to H4 support at 1110.0 may be seen. Although 1110.0 is positioned within the aforementioned daily demand area, the selloff currently being seen in this market, which is on course to close in the red for the sixth consecutive week, may be too strong to consider buying from here.
Our suggestions: Our desk has reported no interest in buying from the current H4 demand, due to buyers likely weakened around this area, and the fact that both weekly and daily price look set to extend lower (see above). Buying from the H4 support at 1110.0, as mentioned above is also somewhat tricky.
Right now, according to the higher-timeframe picture, selling is the better option. However, with the current H4 demand still in play and the top edge of the daily demand area seen nearby at 1117.8, we would be just as cautious selling at the moment.
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