<p>On the daily chart below, we can
see that after falling for basically the whole February, gold had a nice bounce
at the start of March. The pullback brought the price back to the red long
period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> where the sellers started to pile in. </p><p>Gold is sensitive to real yields,
and these have been rising lately as the market is pricing a more hawkish Fed
given that the US data started to come in hot since February onwards. </p><p>Yesterday, <a target=“_blank“ href=“https://www.forexlive.com/news/ka-powell-20230308/“>Fed
Chair Powell</a> opened the door for a 50bps hike and a higher
terminal rate which caused a selloff in gold as the market is now pricing a
higher chance of the more aggressive hike at the March meeting. </p><p>The market will now focus on the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>NFP and CPI report</a> that are coming next and beats
in the data should send the price even lower, while misses should give us a
strong rally, possibly towards the 1900 level. </p><p>On the 4 hour chart below, we can
see that the buyers couldn’t sustain the breakout of the 1860 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> zone and gave up to the sellers
resulting in a fakeout. The big selloff you see on the chart was some
positioning into Powell’s testimony and then more selling as Powell sounded
more hawkish than expected. </p><p>The price has overstretched a bit
yesterday as depicted by the distance between the price and the blue short
period moving average. Generally, we can see some consolidation or a pullback
before the next push into the original direction. The most likely area for a
pullback would be the resistance zone at 1825. </p><p>On the 1 hour chart below, we can
see more closely the possible resistance for a pullback. The 1825 area has the
red long period moving average and as you can see looking left, this level has
been respected by the market several times. </p><p>That’s where we will most likely
see the sellers piling in again trading into the NFP. In case, the NFP misses
expectations, the buyers will have the conviction to break the resistance and
probably extend the rally towards the 1860 level. </p>
see that after falling for basically the whole February, gold had a nice bounce
at the start of March. The pullback brought the price back to the red long
period <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
average</a> where the sellers started to pile in. </p><p>Gold is sensitive to real yields,
and these have been rising lately as the market is pricing a more hawkish Fed
given that the US data started to come in hot since February onwards. </p><p>Yesterday, <a target=“_blank“ href=“https://www.forexlive.com/news/ka-powell-20230308/“>Fed
Chair Powell</a> opened the door for a 50bps hike and a higher
terminal rate which caused a selloff in gold as the market is now pricing a
higher chance of the more aggressive hike at the March meeting. </p><p>The market will now focus on the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>NFP and CPI report</a> that are coming next and beats
in the data should send the price even lower, while misses should give us a
strong rally, possibly towards the 1900 level. </p><p>On the 4 hour chart below, we can
see that the buyers couldn’t sustain the breakout of the 1860 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> zone and gave up to the sellers
resulting in a fakeout. The big selloff you see on the chart was some
positioning into Powell’s testimony and then more selling as Powell sounded
more hawkish than expected. </p><p>The price has overstretched a bit
yesterday as depicted by the distance between the price and the blue short
period moving average. Generally, we can see some consolidation or a pullback
before the next push into the original direction. The most likely area for a
pullback would be the resistance zone at 1825. </p><p>On the 1 hour chart below, we can
see more closely the possible resistance for a pullback. The 1825 area has the
red long period moving average and as you can see looking left, this level has
been respected by the market several times. </p><p>That’s where we will most likely
see the sellers piling in again trading into the NFP. In case, the NFP misses
expectations, the buyers will have the conviction to break the resistance and
probably extend the rally towards the 1860 level. </p>
This article was written by ForexLive at www.forexlive.com.