I wanted to start off with the Dollar chart because this week something happened. The dollar broke to new 13 year highs. And from my point of view, that changed the count for the dollar. By changing the count, I worked out as best that I could what to expect in the near term future.
First lets look at Fib #2. Fib #2 shows the 100% level of Wave #1, (which we just passed this week). What that suggests is that we are currently in Wave 3. So how high can Wave three go. My absolute top is 103.10, But I think it will end at 102.81. WHY 102.81? Because if the Wave 2 correction was a steep clean nearly 61% retracement as Fib #1 shows, then Wave 4 retracement should be a shallow 38% retracement as Fib #3 shows. Fib #3 shows 102.81 with a retracement back down to the top of the major resistance, Which is now support, which is coincidentally the 38%. Make Sense? Hope I am not confusing you.
So then what, I think we start Wave 5 with the December 14th rate hike. I marked it with a black line. Wave 5 should also take gold way down to the 1115 - 1120 level. That's my low for the end of January. Possibly turning around on Inauguration day. Fib #4 shows a 100% measurement of Wave #1 and of course it could be higher than that. So anywhere from 104.45 to 106.89.
I will follow up with Gold in a little bit. But you should get where I am going with all of this.
There is actually support around 1187 to high 1186 for spot gold. Just follow the blue line to past price touches. And there is nothing significant on the Economic Calender until Wednesday morning. Which happens to be the day after the COT report cut off. What I do not have a clue about is....how low can Jnug go. $5, $4 ???? If I am correct, then I will use price action for Gold and the Dollar to give me an idea of when we are close to the turnaround.