Gold is Trading on inflated Price-action, correction ahead

Gold's general commentary: The Hourly 4 chart’s Ascending Channel was finally near pricing a Higher High’s within #1,820’s. Despite the positive Fundamental speculations, my attention shifts to the Technical necessity for a Lower Low with the pressure points being near the #1,790.80 initially on the Daily chart. Keep in mind that the highlight of the week is DX, taking strong hits which were later Bough, but with Bullish Gap fill early on E.U. session which adds Volatility on Gold as an result, along with the Bond Yields without much action (on cyclical downside). However, #1,821.80 remains a strong Support (what was posing as an Resistance, when broken acts as a Support) and market closing above constitutes Buying sustainability. On the other hand, #1,805.80 Support break can extend the decline towards #1,790.80 Support as I stated more than once that I am Bearish on Medium-term and that Gold is bound to test #1,750.80 barrier and #1,700.80 in extension sooner or later.


Technical analysis: A modest recovery observed on Bond Yields early on, surely improved market sentiment, subsequently weighing on traditional reaction of the market using Gold as a safe-haven. Recovering the recent Low's in the shape of a near-full-bodied Daily chart's Bullish candle, Hourly 4 chart's is determined to challenge last Year's closing level at #1,535. Another point worth taking on board here is the RSI indicator on Gold is seen testing Overbought waters on all charts (This happened last time on February #2014), and as it was evident on December #16, Resistance rejection on RSI resulted subsequently as an correction on Gold. Note on the Daily timeframe, Support is also visible at the #1,805.80 and if broken will surely point out lower levels. Side Swing that Gold Traders are witnessing right now is suitable for Scalpers but can also wipe out Traders who don't realize the importance of current's violent Volatility on Gold. I advised earlier to approach the market with extreme caution. As discussed, it is better to have the Profits in your account and got margin ready to invest on the next good trend opportunity than to gamble on ranging markets. I am expecting #1,805.80 test within #2 sessions if Bond Yields continue the uptrend and Gold breaks #1,821.80 and comfortably Trades below that point.


My position: Gold is now ranging as the signs of exhaustion from both the Inflation rally and DX’s correction are showing up. Technically the Price-action is Neutral on Hourly 1 chart within #1,820’s belt. However, Price-action broken the #1,821.80 Resistance and got rejected near #1,832.80 Ultimate Top, as an Selling pressure from Bond Yields. What worries me is DX, Trading on Bullish Gap fill which be filled sooner or later, which may add enormous Buying pressure on Gold, as it was the case lately in most occasions. Under this Volatility best to do is wait for a breakout. Anything outside Daily chart's Rectangle is led by macro-economic forces that are difficult to handle with such uncertainty. Breakout points: #1,832.80 Resistance break will extend the #1,848.80 test, while #1,821.80 Support will be a call for #1,805.80 extension. When Gold is Trading on Inflated Price-action, as uptrend was aggressive, decline will most likely be the same. I will engage my Selling order with #1,819.80 as an entry point, calling for #1,805.80 or less in succession. I doubt that Gold has more upside potential, all depends on correlating instruments.