The FX Market 12th May 2021

This page will give followers daily access to free daily fx market analysis for Forex pairs, with a focus on the gold market cap.

XAUUSD 1HR TF:

Gold is currently Bullish on the daily time frame. Price close for 11th May 2021 is just below the pivot point (pivot point is 1832.16, while closing price is 1836.73).

Resistance 3

1870.01

Resistance 2

1855.87

Resistance 1

1846.3

Pivot Point

1832.16

Support 1

1822.59

Support 2

1808.45 Support 3 1798.88  

1 hr Time Frame:

Price is currently moving in a Ranging structure on the one hour time frame. We now have 1845 as the Range top, and the Range bottom is 1817. The defense by the Bulls (1817), is currently holding as Sellers were unable to break and close price below that zone. Bears may want to push price below 1814 zone in a bid to achieve a full break of the current Bullish structure. Buyers will be looking for a Bullish continuation. Basically, Range structure is intact on the 1hr time frame. Price is now Ranging and Bulls may want to break the Range top. A break of the current High (1845 area) will take price to 1855 zone (Resistance 2). Bulls are now in charge as price of XAUUSD continues to rise above the 1800 mark. Bears offensive attempt at the 1817 area was met with a much stronger counter-offensive force by the Bulls. The Bearish formation effect of Head and Shoulder pattern on the 1 hour time frame was summarily neutralized by the Bulls. Sellers are now forming a Resistance at the 1842 area. Be it as it may, the Pivot point (1832 zone) is now the first hurdle before the Bears. A break of 1832 level will push price down towards 1822 zone (Support 1). If Support 1 (1822 zone) gives way, the next Support level is 1808 (Support 2) . Technically, the Bulls are currently in control as every dip in price may be used as a Buying point by the Bulls. However, Sellers will need to break the immediate Support zone first (1822 area), Support 1.   That said, Bulls have already doubled the reinforcement below Support 1 at 1822 zone, ready to defend that zone. A stronger Support zone still remains at 1817 area, as it has been tested once. We believe that this zone will serve as a major support near term. Sellers will now try, by all means to push price below the Pivot Point zone (1832 zone). The 200 Simple Moving Average SMA is currently far below price at the 1799.73 area. It (200 SMA) is also turning up at a much faster rate towards price. Levels to watch on 1hr time frame: Resistance: 1842, 1845, 1855 and 1870. Support: 1832, 1822, 1817, 1808 and 1798.

4 hr Time Frame:

Here, we will be taking a look at the Golden Cross on the 4 hour time frame. Currently on the 4 hour time frame, the Golden Cross is still in place as the 50 SMA crossed above the 200 SMA at 1729 area. Bulls took total advantage of the opportunity back then (15th April 2021), and it is currently a leverage for the Bulls. Price is now far above the 50 SMA. The effect of the current Bullish Golden Cross is still strong. Price may see more upside movement as a result of this. Price is now Ranging at this point. Sellers may have some level of hope if price drops below the 50 SMA (1801.62 area). However, the chance for this drop in price to occur is very slim for now. Reason being that, price has just spiked up in the last session by the Buyers in reaction to a downward push by the Sellers.

Daily Time Frame:

Market opened at 1836.76 above previous Day pivot. Bears may want to seize advantage and possibly push price downwards by the end of the day. Technically, price may rise today a result of the long wick on the latest Daily candlestick. We now have a Bullish Pin Bar on the Daily chart. Price is currently Ranging on the Daily chart. Range top is 1845, Range bottom is 1817. Only time can tell how long price will Range before a possible breakout either upwards or downwards.  

Fundamentals:

High Impact news for today is U.K Gross Domestic Product data coming up in the London session at 06:00 GMT. Another High Impact news for today is U.S Consumer Price Index data  coming up in the London session at 12:30 GMT.  

Check Out XAUUSD Previous Forecast:

The FX Market 11th May 2021 The FX Market 10th May 2021

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