XAUUSD 1H - Levels

After the FOMC move down breaking 1800 we can now see the formation of a double bottom on the hourly. Excalibur is suggesting the move down for this week at least is over with. It hasn’t left us any sell signals apart from the previous ones below at 1720 and 1647. We have to keep in mind we also have the targets above at 1908 and 1917 so for this reason we’re going to trade intraday until we get confirmation of a new trend and direction short-term. Right now we’re looking for support to form back at the 1785 level which needs to hold. We have an indication of a move further up towards the 1802-5 levels which could happen during the US session. Technically this should correct some of the FOMC movement so a 1800 challenge seems feasible.

Levels are on the chart so please add these intraday levels along with the Daily levels we’re going to publish next. In scenarios like this where the price action looks uncertain its best to trade it level to level and have a strict stop loss policy in place. Excalibur gave us a long signal which has now hit its target, we do know that after an Excalibur target is hit it usually pulls back a bit so keep an eye on that support level below. If 1802-5 acts as resistance today then its likely this will come back down to test the low and potentially open up the lower levels of 1750 and then the KOG target of 1720. For now we’ll take longs for the retracement and short capture, however, we shall remain short on this unless it breaks 1830 and holds above it. Its Friday so try not to enter any trades after the US session unless the setup is there, which we will share with you if it arises. Don’t get stuck in trades over the weekend, we want to see how this weekly candle closes today and ideally start Fresh on Monday.

As always, trade safe.

KOG