Gold formed a bearish weekly candle for the first time after 9 weeks of bullish candles.
The gold price has been held back from climbing further by a strengthening dollar and also due to a technical overbought.
In the H4 chart, we can see that the gold has just completed the 2nd wave of a bearish trend but came short as compared to the first wave.
There isn't any strong selling pressure seen and the bearish move last week is probably just another consolidation before the gold resumes its major bullish trend.
This week, we will watch closely for the demand zone right below 1410 as the price is expected to retest the current low since the rebound last Friday wasn't strong.
However, traders should watch out closely for FOMC as well as NFP to gauge the dollar strength when trading the gold.
If the gold does drop below 1410 and rebound from the demand zone, it would be a good opportunity to build gold long before FOMC.
The gold price has been held back from climbing further by a strengthening dollar and also due to a technical overbought.
In the H4 chart, we can see that the gold has just completed the 2nd wave of a bearish trend but came short as compared to the first wave.
There isn't any strong selling pressure seen and the bearish move last week is probably just another consolidation before the gold resumes its major bullish trend.
This week, we will watch closely for the demand zone right below 1410 as the price is expected to retest the current low since the rebound last Friday wasn't strong.
However, traders should watch out closely for FOMC as well as NFP to gauge the dollar strength when trading the gold.
If the gold does drop below 1410 and rebound from the demand zone, it would be a good opportunity to build gold long before FOMC.
