XAU#21: Gold is soaring. Will it break the top and trading plan💎 💎 💎 The "bulls" are back as analyzed in the previous article. The price OANDA:XAUUSD has passed the trendline and there is no sign of stopping. Let's plan the next trading FOREXCOM:XAUUSD : 💎 💎 💎
1️⃣ **Fundamental analysis:**
📊Warning of short-term inflation shock: The market is pricing in the US CPI to remain around 3% for the next 7 months, reflecting a sudden increase in inflation. The 25% tax on imports from Canada and Mexico could increase consumer costs, putting pressure on inflation.
🚀Unstable context: US tariffs, war in Ukraine, inflationary pressure ... are causing concerns about an economic recession. This has pushed the gold price up again in the past 2 days.
2️⃣ **Technical analysis:**
🔹 **D frame**: The bullish price structure is still continuing, however, in my personal opinion, this increase is not sustainable.
🔹 **H4 frame**: The key down zone was broken last week and the price has returned to the resistance zone. The price reaction in this area is currently not positive. The bulls are still dominating as the previous H4 was a long-bodied candle.
🔹 **H1 frame**: The current price structure is bullish and there are no signs of a reversal.
3️⃣ **Trading plan:*
⛔ Although the price is in the resistance zone, the price reaction is weak enough to set up a SELL order. Currently, the fundamental information and short-term price structure are supporting the bulls. However, it should be noted that if the price increases continuously without recovering and breaks the peak once again, we will likely have a correction phase.
✅ BUY positions in the lower area can completely wait for better profits. In addition, when the price finds the support zones below, we can completely wait for the opportunity to establish the next position when the price structure appears in the smaller time frame. Note that
💪 **Wishing you success in achieving profits!**
