DXY - although the intraday chart posted a bearish Bat formation, and we have seen mild selling pressure, immediate signals are hard to interpret. We are between a support barrier at 101.78-101.65 and a strong resistance level at 102.57.
The 4-hour chart highlights an Expanding Wedge formation which has a bias to break to the downside. With the trend of higher lows at 101.66 being close to our support barrier (101.65), this zone is also considered a formidable barrier. There is ample scope for a move in either direction while inside this pattern.
Gold - the daily chart highlights the commodity moving lower within the BC leg of a large Bat formation. A common retracement level is the 88.6% Fibonacci retracement of the last rally. This barrier/target is located at $1,904.
Looking at the intraday chart, price action has formed a bullish Ending Wedge pattern. On a break of the trend of lower highs at $1,926, the measured move target is $1972.
However, with bespoke support of $1,946 located close to the previous swing high of $1,947, the rally could stall. We could then form a bullish reverse Head and Shoulders pattern.
Conclusion: the long-term bias for Gold is bullish. We have various possible scenarios. It is unclear if the inflation data will take the commodity down to the 88.6% pullback level of $1,904 or if an aggressive data result will see a clear breakout of the wedge formation and a rally to $1,946.
The 4-hour chart highlights an Expanding Wedge formation which has a bias to break to the downside. With the trend of higher lows at 101.66 being close to our support barrier (101.65), this zone is also considered a formidable barrier. There is ample scope for a move in either direction while inside this pattern.
Gold - the daily chart highlights the commodity moving lower within the BC leg of a large Bat formation. A common retracement level is the 88.6% Fibonacci retracement of the last rally. This barrier/target is located at $1,904.
Looking at the intraday chart, price action has formed a bullish Ending Wedge pattern. On a break of the trend of lower highs at $1,926, the measured move target is $1972.
However, with bespoke support of $1,946 located close to the previous swing high of $1,947, the rally could stall. We could then form a bullish reverse Head and Shoulders pattern.
Conclusion: the long-term bias for Gold is bullish. We have various possible scenarios. It is unclear if the inflation data will take the commodity down to the 88.6% pullback level of $1,904 or if an aggressive data result will see a clear breakout of the wedge formation and a rally to $1,946.