12.12.201911:11 Forex Analysis & Reviews: Trading idea for gold

Long-term review

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Good day, dear traders! I present to your attention a trading idea for gold.

Yesterday, December 12, two different but interesting events for the American dollar took place.

Event number 1. Inflation. The consumer price index did not change, but even at the moment traders identified it as the weakness of the dollar and began to get rid of it slowly, it was visible both through EURUSD and through gold.

Event number 2. FOMC, bid, and Powell's press conference. Forecasts for the US economy were announced unchanged. The revision of rates is planned not earlier than 21 years. Anyway, Jerome didn't tell us anything new. But traders took this event as a weakness of the dollar, and it was seen in gold and EURUSD.

Thus, we have two events, the market reaction to both of them was negative for USD.

I propose a trading idea based on the above reactions and based on technical analysis by the method of "hunting for stops":

Gold fell a little short of the Non-farm extreme in the evening, and this is a good target for fixing the first part of the longs.

The idea will be relevant as long as the asset trades above the FOMC.

Good luck with trading and follow the rules!

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