Daily Price Outlook
* Labor Day holiday leads to low trading volume and liquidity as banks and financial institutions are closed.
* Precious metal market struggles to break above $1985 resistance; strong bearish bias due to technical indicators.
* Today's trading strategy: short positions below $1985, targeting $1976, with a stop-loss above $1990.
Good morning everyone, and welcome back. This week starts with a national holiday, Labor Day, resulting in the closure of most banking sectors and financial institutions today. Consequently, trading volume and liquidity are expected to remain low.
Examining the technical side of the precious metal market, it is struggling to break above the $1985 resistance level. This resistance is reinforced by the 50-day exponential moving average, and the formation of two bearish shooting star candles below the $1985 level suggests a strong bearish bias. On the downside, gold is likely to find support around the $1980 level, and a decisive break below this level could trigger further selling towards $1976.
Looking at key technical indicators such as MACD and RSI, both are exhibiting bearish momentum, as they reside in the sell zone below 50 and zero, respectively. This suggests that selling pressure may dominate the market today.
With this in mind, today's trading strategy is to look for short positions below $1985, targeting $1976, with a stop-loss set above $1990.
Gold (XAU/USD) Trade Idea
Entry Price – Buy Above $1985
Stop Loss – $1990
Take Profit – $1975
Risk to Reward – 1 : 2
Profit & Loss Per Standard Lot = +$1000/ -$500
Profit & Loss Per Micro Lot = +$100/ -$50
Please click here to read and acknowledge our Trade Ideas Disclaimer before using these ideas in your strategies and trading. This document’s information, including forex signals and research, is for general informational and educational purposes only and does not provide specific financial, investment, or trading advice.
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.