Gold is cautious market at the moment

Fundamental analysis: Current strong critically Overbought levels are nothing more than a product of Fundamental pressure - mix of Bond Yields near #4-Month Low’s, DX taking strong hits after yesterday's session relief rally and uncertainty of the Fed about their future rate change (which is probably drawn out of general indecisive Fed chair). On a rather normal Trading session, Technical models and rules are there to be followed, however since these are Fundamentally driven sessions, #1,952.80 benchmark test was fair estimate as DX engaged one of the greatest aggressive uptrends in #4 quarters, however Gold ignored as it had less or no effect on the Price-action. Risk now may grant excellent return on investment, but always changing Supply-Demand will interfere and according to my estimations, there is more dangers (holding worthless position) in it rather than benefits. If I can draw anything positive from the current Price-action, is that Gold (with current DX numbers) should be significantly Lower under the circumstances, but market speculators are strongly limiting the downtrend in extension. Note that this Ascending level also pairs reasonably with the Weekly chart's (#1W) Resistance and Support pricing. Gold is a cautious market at the moment.


Technical analysis: I spotted increasing Resistance level seen Trading at #2,000.80 - #2,005.80 configuration and as Doji Star Bearish reversal candle was delivered throughout yesterday's session, it is possible to extend the Selling sequence below #1,952.80 psychological benchmark as Buying pressure is easing as Fundamentals are not affecting Gold market as before (Gold struggles to continue Trading above #2,000.80 benchmark). Volume remains relatively Low so these upside attempts should remain very limited. I have now updated the main correlation shift from Bond Yields to DX, so take that into consideration prior to positioning. Only reason why Gold stays ranged and not losing more is DX on expected recovery from yesterday's session slide, testing it's Daily chart's Support zone which was applying Buying pressure on Gold. Keep in mind that previous Selling attempts were rejected however current configuration points that if Short-term switch occurs (Bearish), Selling potential will be here to stay.


My position: Even though Price-action is Neutral and within a Triangle (major move yet to be revealed) I will not take any excessive risk as I am Highly satisfied with my Trading results. However, I have engage mini Selling order with #1,998.80 as my entry point (very tight Stop-loss since if #2,000.80 breaks firmly, Price-action can spike up towards #2,010.80 Resistance within few minutes) if Sellers arise and engage the decline. If you decide to Trade this, implement very strict Risk management as current session is better to be avoided.