Technical glance: Gold’s (XAUUSD price) has plummeted below 7 & 21-DMAs after gravestone doji at peaks of $1,321.67 levels.
However, it has continued to sense buying sentiments after today’s hammer formation at $1,290.06 levels (on the 4H chart). There is no support from technical indicators as you could observe both RSI & stochastic curves show downward convergence constantly to the steep price dips to indicate selling momentum.
To substantiate this bearish sentiment, the trend indicators also show bearish DMA & MACD crossovers on this timeframe.
On a broader perspective, double top with consecutive shooting stars nudge price below EMAs on monthly plotting. To counter these slumps, ever since the formation of hammer pattern at $1,200.55 levels in Aug’2018 (exactly at double top neckline) we’ve seen more upswings, On the contrary, shootings star pops-up at $1,313.01 level that puzzles the major trend. Both momentum oscillators (RSI &Stochastic curves) substantiate bullish sentiment, but can it be a triple top?
Overall, bulls in the bullion market managed to ensure the consolidation phase, and it is likely to prolong as long as the current price remains above EMAs.
Trading tips: At spot reference: $1,292.05 levels, on trading grounds, one can trade this commodity via boundary options spreads using upper strikes at 1,293.90 and lower strikes at 1,286.65 levels. The strategy is likely to fetch exponential yields as the underlying commodity price remains between these strikes on the expiration.
Currency Strength Index: FxWirePro's hourly EUR is at -21 (mildly bearish), hourly USD spot index is inching towards 69 levels (bullish), while articulating at 11:22 GMT.
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
