Gold: XAUUSD Gold/Dollar play Update: Careful Here !
GOLD: XAUUSD Gold/Dollar Play (continued) Neutral Here ahead of DXY break down
Gold longs on back of DXY weakness need to be careful here.
Still believe that the inverted flag formation on DXY chart
(right) is a continuation pattern prior to DXY dropping down
and out of the lower parallel down to 92.62. That will propel
gold as high as 1297 at least and more likely back to 1305 as
this move develops. But we cannot turn aggresssively bullish
of Gold until that lower parallel is busted on the downside.
Each test of the lower parallel on DXY tells us to close down
Gold longs again...and wait for that break down on DXY.
Gold longs on back of DXY weakness need to be careful here.
Still believe that the inverted flag formation on DXY chart
(right) is a continuation pattern prior to DXY dropping down
and out of the lower parallel down to 92.62. That will propel
gold as high as 1297 at least and more likely back to 1305 as
this move develops. But we cannot turn aggresssively bullish
of Gold until that lower parallel is busted on the downside.
Each test of the lower parallel on DXY tells us to close down
Gold longs again...and wait for that break down on DXY.
Comment:
Trade going well, so far. Maybe take 25% off with gold at 1291 - but there should be quite a lot to go yet on upside for the patient
