Type: Bullish ContinuationKey Levels:Resistance: 1909.2Pivot: 1890.7Support: 1881.3Preferred Case:Prices are consolidating in a parallel channel and are on bullish momentum. We see the potential for further bullish continuation from our Pivot at 1890.7 in line with 23.6% Fibonacci retracement towards our 1st resistance at 1909.2 in line with 100% Fibonacci extension and 127.2% Fibonacci expansion. Prices are trading above our Ichimoku clouds further supporting our bullish bias.Alternative Scenario:If prices were to dip, they can potentially drop towards our 1st support at 1881.3 in line with 38.2% Fibonacci retracement.Fundamentals: Fed’s re-iteration of the possibility of a 100bps hike of Fed funds rate by 1 July and also further escalating of tensions from Russo-Ukraine crisis will support further rally on the Commodity.We will urge investors to exercise prudence when trading today as we expect high volatility amidst the FED speeches and major data releases tonight. (Fed Monetary Policy Report, CFTC Gold speculative net positions etc.)
Source: Tickmill