Today we saw most of the dollar pairs breaking their range and starting to move indicating dollar strength might be coming back into the market. The dollar index made a higher high compared to yesterdays high and ranging market and this could maybe mean that traders are starting to see a possibility of a rate hike in June which would make sense because the fed watch tool has moved up from 95% from earlier today to 99.6% chance of a hike. so with this information it wouldn’t be wise to stand in the way of dollar bulls when there is a hike around the corner. My plan is to sell Gold when the time is right, USDJPY is a pair that inversely correlates with gold and we have also seen that move up and make a higher high with gold making a lower on the H1 chart.

XAUUSD D1

Gold reached 1290 and MR1 this level of resistance is in line with the high of April then we saw gold move down significantly. Being at a key level of resistance and with a very over bought stochastics we could see gold move down to MS1 (1230)

XAUUSD H4

On this chart we are currently at support, but with the dollar starting to get strong we could see it move lower and break this support. As a bear i am waiting for price to move up and then sell it high on an H1 chart

XAUUSD H1

Gold reached the weekly profit zone and started to move down, we have seen lower lows and now as a bear i would like price to move up to resistence/role reversal and sell it.

2 thoughts on “99.6% Chance of a rate hike! Gold Technical Analysis For Going Short Also considering The Dollar Index and USDJPY as confirmation”

  1. Alysa Sage says:

    Hey,

    Thanks for giving some insight to the gold/USD movement. I understand that they have an inverse relationship and JPY does benefit from a stronger dollar being they are the largest exporting country. Keeping last rate hike in mind, I know that the market tends to belong to the scalpers for the hour or two after the hike is announced. I plan to keep an eye on gold, still getting the hang of reading it, and buy the dollar after all the commotion calms down while selling gold. I like how you broke everything down with the TF to make sure each stoch. lines up, something I’ve just put together myself.

    Happy trading!

  2. frank says:

    i also had a trade plan on gold exactly the same as you. perfect plan man. im already on that trade

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