Riding the #1,725.80 breakout as Gold Targets #1,764.80

Gold's general outlook: Despite the strong Bearish candle sequence on the DX, Gold remains Bullish and above my Support for the day as the U.S. session approaches and Political tensions resurface. However, #1,744.80 is new Resistance zone made by the Hourly 4 candlestick configuration. Gold is pulling back again after it failed to break above it’s Higher Low zone on the Hourly 4 chart, while #1,720.80 configuration is protecting the eminent downtrend. This sequence is similar to the September #24 - #28 pattern when a Double Bottom was made before the strong rebound. It is therefore possible to re-test #1,729.80 before rebounding, but not certain, as the DX touched it's Hourly 4 Support but yet again failed to break it. Also current Gold's impulse was highly correlated with the side Swings on the Bond notes market. As discussed, the Gold is Trading on a Bullish flag and that fractal is Buying back every dip and postponing the downtrend and pointing me that Gold should be timed for upswing (regarding Short-term). I am looking to complete a full oscillation towards #1,764.80, in the same time my main point of interests, but not yet - Gold firstly needs to digest the Fundamental speculations and pick a side/major move. Consequently, the current consolidation and another Bullish wave and recovery extension should come as no Technical surprise.


Technical analysis: Following a Bearish Medium-term (steady Low rates in the foreseeable future) outlook from the Fed aftermath, trend on Short-term will switch from Bearish to Bullish if the DX keeps loosing along with the Bond notes. Gold (Xau-Usd numbers in my focus) is attempting to find balance between the two factors and has found itself consolidating again around the #1,735.80 point, naturally on a Bullish Hourly 4 chart setting. This is similar to the September #9 - #14 consolidation on the Hourly 4 chart #MA50 with the rough neckline then being #1,937.80 - #1,951.80 (excluding the unusual event on the #10), until one of the lines got invalidated and Gold revealed the major underlying trend. The Daily chart Support is right below and ready to postpone the downtrend, Trading on #1,720.80. Gold can go as far as Bullish Flag pattern pushes it so I will not try to Sell too early the current Buying bias, only if strong Support gets invalidated. I have a Bullish breakout signal as DX turned Bearish again on the Short-term (and remains Bearish on the Medium-term), which is a Bullish development for Gold regarding #2-Week horizon. This uptrend is directly related to the decline on DX and spiral downtrend on Bond notes, but even then the uptrend on Gold will not be so strong as Gold remains Bearish on Medium-term. It seems that Investors who Sold Gold during the current #2-Month decline, closed their positions whenever they heard of Stimulus news. Theoretically it makes Investors take capital off of riskier assets and place it in safe-haven assets such as Gold.


My position: As discussed on my yesterday's commentary (breakout points), #1,725.80 got invalidated and I am riding current Bullish wave from that vicinity, Targeting #1,764.80 with my set of Buying orders.