Gold still within a Neutral Rectangle / New update below

Gold's general commentary: The Daily chart is delivering more clearer structure in times of violent market Volatility and drawdown on Stock markets such as January fractal, and that showcases that the Price-action is Trading on the #4th straight capital candle within the Neutral Rectangle on Hourly 4 chart. As long as the Daily chart’s #MA50 holds and adds durability, current Selling sentiment should be extended towards the #1,806.80 Support extension and if broken, a Higher Low’s Lower zone should be tested near #1,752.80 psychological barrier. The Daily chart aswell continues to Trade near healthy Selling levels and the market is just waiting for the Neutral Rectangle to break which may kick-start the aggressive takedown on Gold. I was ready to Sell Gold on spot ahead of today’s E.U. session, however DX invalidated the Short-term Support, and is dangerously approaching #103.270 Medium-term Support zone, so that development alone should ease Selling pressure on Gold, leaving me without pattern to Trade by.


Technical analysis: As expected, Gold once again honoured it’s DX correlation (main one I have at the moment) and has been rebounding since Friday's session, replicating the December’s Bottom sequence. However, as long as Daily chart remains Bearish and Hourly 4 chart Neutral, there is always a chance (small though) for one local High’s peak around #1,852.80 - #1,862.80 zone, which should form a Triple Top above the Neutral Rectangle before #1,806.80 test and eventually #1,752.80 barrier (Xau-Usd Spot prices values). As a result, I am less interested to Buy Gold as sessions go by, and will look to re-Sell Gold once again near #1,820.80 - #1,822.80 new / old Support fractal (along with the confirmation from DX, currently showcasing strong durability near #103.270 Medium-term Support). Once again Price-action went to Stop-loss hunting throughout Friday’s session (current violent Volatility is making Gold market Highly unstable lately) where DX didn’t invalidated the Medium-term Support line and Bond Yields near #1-Month Low’s were unsuccessful to engage much expected Selling sequence on Gold. Even though Fundamental announcement delivered expected numbers, Support zone almost broke but shortly after Gold rebounded and is currently within the (former) #1,821.80 - #1,841.80 Neutral zone fractal (variable disastrous for Short-term Traders, and decision not to enter the market throughout Friday’s session was spot on).


Fundamental analysis: The Hourly 4 chart was at it’s Highest since pressure point on more than #4 occasions since May #27 as Daily chart’s Bearish values are well preserved, able to convert to critically Bearish once Hourly 4 chart’s Support zone is invalidated. These are positive signs for Gold’s Short-term Sellers but as discussed, the market has turned to Fundamentals again for direction as Bond Yields are still not on Top of my importance list. Failure to deliver a supportive sentiment may panic the Yields more and Gold may suffer double the effect as DX should continue to gain in value with Investors using it as safe-haven (note that this was similar to what happened in February and early March on virus outbreak). If Gold holds Friday’s session Low’s it can pierce the #1,800.80 barrier (within #5 sessions), otherwise look to re-Sell near #1,842.80 - #1,844.80 first Resistance zone. It is important to keep in mind that Gold is within Neutral Rectangle on Hourly 4 chart able to convert and form an Descending Channel, where local High’s can be distinguished as an ultimate Top and rejection point which may kick-start aggressive decline on Gold as soon as DX starts Medium-term relief rally.


My position: As Gold is currently on Short-term crossroads and Support zone which I aim for is currently distant, most likely I won't be getting opportunity to Sell Gold on spot throughout today's session, especially with DX near Medium-term Support zone. If however DX continues to Trade on losses and Gold breaks #1,842.80 - #1,844.80 Resistance zone, there is decent possibility that #1,862.80 may be filled on Intra-day basis, signal which I will use if mix of all factors I mentioned above go along.


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