It is a medium-term technical analysis for DXY in the fourth hour's time frame. It can be seen that bullish flags dominate the current chart. An expectation of higher earnings for the dollar may cause more losses in gold during the next few weeks.
However, DXY should not stay lower than 106, a key level for breaking down. While the significant resistance is 109, breaking this level will confirm an uptrend for the dollar following this chart analysis.
However, DXY should not stay lower than 106, a key level for breaking down. While the significant resistance is 109, breaking this level will confirm an uptrend for the dollar following this chart analysis.
Trade active:
Well, DXY finally breaks the key resistance of 109. At the current level of 109.97, it is nearly the minimum target of 111. Recently, gold performs wave C in its downtrend. The next scenarios could be the following cases;
1. Breaking and maintaining above 111 will influence more loss in the gold price. The gold market will be dominated by selling.
2. Otherwise, if DXY cannot stand above 111, it will support the gold price to rebound in short term. Then 1728 or 1747 are SL for short gold. As well as being good levels for long gold.
1. Breaking and maintaining above 111 will influence more loss in the gold price. The gold market will be dominated by selling.
2. Otherwise, if DXY cannot stand above 111, it will support the gold price to rebound in short term. Then 1728 or 1747 are SL for short gold. As well as being good levels for long gold.
Comment:
Comment: DXY seems to be very close to the key resistance of 114.64 , or its maximum target of this round. Gold could rebound before dropping again. However, Powell’s speech at 21.30 pm (GMT+10) may affect volatility of the market. So, be careful and apply all SL.