#1,748.80 and #1,678.80 on the cards / holding my Selling order

Gold's general commentary: Despite Friday’s strong response to #1,800.80 barrier rejection, Gold failed to maintain those High levels and was rejected on the Daily chart’s Resistance zone. Yet, it still found Support on the Daily chart’s bottom of the Lower High zone, which remains Bearish and has High potential to contain current Bullish Short-term recovery. Factors that may break the Support: #1) Bond Yields Bought back already made losses but still didn’t found the Resistance #2) Inflation is still on High levels / also Inflation chart was on ATH for some time #3) DX is still main correlating asset (will remain as such throughout September - October) and it’s Volatility can wipe out Short-term Traders from from the market, as Gold always tends to remove retail Traders from the equation and then Price a major move. Unless Gold Trade sideways for at least #1 - #3 sessions, Daily chart Rectangle will always pressure for a test with the #1,800.80 psychological barrier as an upper variance, which is enough reason for me to pursue Lower Targets (Selling from the Top) if #1,786.80 breaks. Personally, as long as #1,786.80 firm Support holds, Gold will be within inner layers of consolidation zone (and I will be preserving my Selling outlook on Gold). For the moment, I see opportunity worth taking on a horizon, which is Selling now near the Support zone as DX Bought back last week’s losses. I will approach with extreme care and I will only engage promising setups (firm Resistance/Support break backed by DX / Yields confirmation, which I have at the moment). Therefore, I Sold on spot and will keep close track of DX (# -0.17%) chart, as momentum can shift on Hourly basis regarding the currency sector. I am rest assured that Gold will touch #1,752.80 within this Trading week’s borders.


Technical analysis: The Hourly 1 chart's Channel Up I wrote about broke on the previous Hourly 4 candle downwards and, as mentioned is Targeting the #1,786.89 Support and strong defensive line Supporting from below, Trading at #1,778.80 (holding from August #22). As long as #1,786.89 holds as an Support, Gold will spike up before the next Bearish leg, but if #1,786.80 breaks, it should be an aggressive decline towards #1,750’s where the Price-action is expected to be in #3 session’s time. To be honest I am surprised that Gold was extending the consolidation, I expected that to take place after the revelation of the major move on most exchanges. But since the Bond Yields are on a Neutral candles and DX taking strong hits, Selling bias is postponed, but it is important to note that even though DX is Trading near the Support zone, Gold is under Selling pressure aswell, near the Selling accumulation zone. This structure only confirms firm Selling bias on Gold, as I still haven’t got reason for strategy shift. If this is the eventual rejection (#1,800.80 - #1,806.80), then I can have a Sell-off once again back to #1,786.80 at least. The first level of Long-term Support though is, as mentioned above #1,727.80 (symmetrical from April #15), where the Hourly 4 fractal also happens to be. Fundamentally, Gold continues to track the DX movement ignoring the (minor but steady) decline on Bond Yields (possible Triple Top rejection). Statistic is there to Support my outlook - last Higher Low attempt and apparent rejection, Gold retraced more than #57 points afterwards, so same fractal could be the case shortly. Today’s Core CPI announcement is main driver for the session, where I expect strong Bullish rally which can aid my Selling outlook. All previous levels and orders remains intact as I expect #1,752.80 Lower Low extension to be tested.


My position: I am still operating with my Selling order I engaged throughout yesterday's session (#1,791.80 entry point), and #1,752.80 as an obvious Target. I am expecting historic decline on Gold if #1,782.80 - #1,786.80 Support zone breaks. Regarding driver for the session (Core CPI), I am expecting it to lift up the DX on the announcement aftermath and push Gold Lower. I am looking at optimal opportunity to extend my Profits run to #11.