Sidelines / Bullish Gold

Strong display of the underlying Bullish trend as despite the strong daily dip on DX (# -0.35%), Gold is Trading sideways within roughly #1,730.80 - #1,750.80 zone (Xau-Usd spot prices on my reports). For me, this Technical setup (with Bullish Gap fill on E.U. opening) is a no call decision since - Gold is surely Bullish on Medium-term, but I cannot rule out the possibility of Hourly 4 chart #MA50 test (#1,727.80). It's not worth to keep such Positions (if engaged) - it is better to remain on sidelines and wait for new Medium-term Pricing opportunity. For now, #MA50 is holding fine, and is currently providing the necessary support to Gold, while holding the Hourly 4 Channel Up, which makes Gold Bullish on Medium-term. Regarding the Fundamental part - all developments are an additional reason why Gold's Bullish trend is intact. I surely remain Bullish, but don't want to gamble on ranging markets. The Hourly 4 Channel Up made a new Higher High at #1,743.80, and immediately pulled back, Trading now near Higher Low trend line whose limit is #1,753.80 (since #1,753.80 is my Technical Top, it is not worth taking any Position at the moment). Any break below #1,727.80 (Support), Bullish Channel Up is compromised and should result to a test of the #1,717.80 point. This is the key for the uptrend: if the Hourly 4 chart #MA50 holds then I can expect a new test of Higher High (it is best to wait that area to be tested and then contemplate Buying the market) but if the #MA50 breaks, Bullish bias is invalidated. At the moment the volatility is too high for highly leveraged Traders as swings are the new norm. The markets await for stimulus from the Central banks and this is the catalyst for the coming months. If a drop on DX, the trend shift on Usd-Jpy pair and continuous decline on Bond markets couldn't make Gold Trade above Higher High currently, then I have to say that Gold will be primarily correlated to the Stock markets these days. I am highly satisfied with my Profits and comfortably on sidelines.