Trump’s decision to withdraw the US from Iran nuclear deal dramatically increases the geopolitical tensions in the Middle East, and from there, Safe Haven instruments such as GOLD and JPY will rise. Let’s look at the gold.
GOLD – Chart – D1
The long-term trend remains Long, but we should also mention the presence of the Triple Top formation, which has not yet been activated. The price is in short-term consolidation at the top, and at the moment at key levels that provide good positioning with long. We have a strong horizontal support area formed by previous lows and highs. In addition, the price reaches 200SMA as well as 50% Fibonacci correction of the last upward wave – positive for the price. The price also touches the inner trend line. 50 and 200SMA are beaded. CCI50 crosses -100 from bottom to top, signaling the start of a new upward wave. Price Action – at the initial touch of the 200-year price, we have a candle formation called “Hang man”. A little later, today we also have a bullish pin bar. Formations clearly show the determination of bulls at current levels.
Alternative Scenario: If the price goes back below the support area, the positive scenario will be spoiled and we will probably see a decrease in the price of gold.
Trader Petar Milanov