The daily XAUUSD price trades between the lower blue and red bands in its weak channel. Moreover, its stochastic is below 20 (green rectangle), denoting strong downside momentum.
The hourly chart is developing bearishly. Its trend-following EMAs and momentum driven stochastic have crossed down (black ellipses). If the stochastic moves below 20 and holds (blue arrow), downwards pressure will be present.
Gold has been under pressure since real rates turned positive in late April. The market expects an aggressive Fed tomorrow, weighing on the precious metal.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.