Gold within Neutral Rectangle

Technical analysis: DX broken the Daily chart’s Support (#102.500) and is Trading on heavy losses at the moment, as Gold is Profiting out of that configuration, as unfortunate counter trend rally is visible. However, as soon as DX reverse Higher again, Gold should follow downwards (due to the DX as discussed, simply copying the Intra-day movements of both). I simply followed the clear Ascending Channel on both Hourly 4 and Daily chart, April #27 variance of Gold could be delivering additional Higher High’s Upper zone test after the rally, as it could be the case later on throughout late currently - early next week. Typical response to these Volatile moves are #1 session consolidation (visible throughout yesterday’s session) and aggressive uptrend on the aftermath (today’s session). Technically, the Ascending Channel has an upside limit of #1,900.80 - #1,905.80. If however #1,882.80 breaks first on the other side, I expect an aggressive takedown towards the #1,850’s level. Market closed below #1,900.80 psychological benchmark, however if today’s session arises Buyers (as it is the case at the moment) and Price-action manages to close above the configuration, then #20 - #30 point uptrend can be expected in extension. My estimations are showing that Gold should slide and test #1,882.80 within #2 sessions, if #1,900.80 benchmark is not recovered comfortably (market closing only important). However, expecting more serious correction trending downwards is in vain with such disappointing numbers on DX. As long as DX is Trading on such levels, Bullish bias is intact on Gold. Gold remains on undisputed Bullish Technicals and #1,952.80 is Medium-term Target to monitor, regardless will the correction will be priced in or not.


My position: Since I am more than satisfied with Trading results and it is final session of the week, I will not make any more moves on Gold and will comfortably monitor the Price-action from sidelines.