FxWirePro: Momentary gold bulls counter double top formation, major downtrend still range – Bid boundary binaries

We have witnessed Gold’s eventful trading sessions in the recent past (almost over 1.30% spike in last 2-3 weeks), gold price in the major downtrend, has struggled to consolidate.

Technically, Gold (XAUUSD price), formed “hammer patterns” at $1,201.95 and $1,200.55 levels on daily and monthly plotting respectively. Consequently, bulls, have attempted to spike above DMAs,on the contrary, but technical indicators on the monthly terms, are in no conformity to these interim rallies. RSI and stochastic curves, on this timeframe, still converge downwards, while MACD is also bearish bias.

Mild bullish swings of this month, are not backed by both trend & momentum indicators (refer monthly chart).

The major downtrend resume after the failure swings at the stiff resistance levels of $1,368.20 levels. While the double top pattern has formed with top 1 at $1,375.04 and top 2 at $1,365.95 levels (refer monthly plotting). As a result, the current price on this timeframe, has slid below EMAs with bearish crossover. Amid this bearish journey, bulls seem to have been exhausted again at 7EMA levels, the major downtrend is foreseen to prolong further upon bearish EMA & MACD crossovers (refer monthly chart). 

Hence, on trading grounds, one can buy boundary options with upper strikes at 1,228.45 and lower strikes at 1220.87 levels. The strategy is likely to fetch leveraged yields as long as the underlying price remains between above strikes on the expiration.

Currency Strength Index: FxWirePro's hourly EUR is at -19 (mildly bearish), hourly USD spot index is inching towards 11 levels (mildly bullish), while articulating at 12:24 GMT. For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex