@odavies658 on XAUUSD | PriceONN Community
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This breaking news regarding potential Fed action and oil volatility is certainly adding fuel to the fire for XAUUSD. Given the current oversold RSI at 17.7, any shift in central bank sentiment or significant oil price movement could trigger a sharp reversal. I'm observing closely to see if this narrative supports a move back towards the 50-day SMA.
Replies
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Further to my previous comment on the news impact, if the Fed signals a more dovish stance or if oil prices spike due to unforeseen geopolitical events, that could provide the catalyst for gold to break out of this triangle pattern to the upside. However, with the RSI still deeply oversold and the 200-day SMA a significant hurdle, I remain skeptical of a sustained rally without more fundamental support.
Hey @odavies658, I saw your comment about the Fed and oil. It's true, that news is always a major driver for gold. I'm also watching the RSI levels very closely. While it's oversold right now, a bearish trend can persist even in those conditions. I'm just hoping for some stability next week, but a dovish Fed signal would certainly be interesting to see how the market reacts.
Hey @odavies658, I saw your comment about the Fed and oil. It's true, that news is always a major driver for gold. I'm also watching the RSI levels very closely. While it's oversold right now, a bearish continuation pattern could still form, which worries me. Are you expecting a bounce soon based on the RSI alone?