This is a new scenario for Gold's direction.
The first is when the daily downtrend continues. This is a case where the daily upward wave is no longer propagated at the current location because the rebound has failed in the daily demand zone, the daily correcrtion ends and the daily downward wave continues.
The second is when the daily correction deepens into an expanded flat pattern, and a second rising wave (y) is created again. It is a daily bullish pattern and can be considered as the initial pattern of a daily bullish wave. In terms of time, it can reach the weekly supply zone before the FOMC meeting.
When the weekly supply zone is reached, a retracement occurs because it is a resistance line. If the employment indicator is not good, it will rebound in the new daily demand zone below, and the daily upward wave will continue as a monthly correction process. If so, the rally could continue until next month's employment data is confirmed.
Third, if employment indicators are good or interest rate hikes continue, the dialy bullsh pattern will break and become a correction pattern. After the weekly correction ends, there will be a weekly downtrend again.
My personal view is that gold will rise soon because I am convinced that an additional monthly correction is necessary for the dollar to rise again.
good luck.
The first is when the daily downtrend continues. This is a case where the daily upward wave is no longer propagated at the current location because the rebound has failed in the daily demand zone, the daily correcrtion ends and the daily downward wave continues.
The second is when the daily correction deepens into an expanded flat pattern, and a second rising wave (y) is created again. It is a daily bullish pattern and can be considered as the initial pattern of a daily bullish wave. In terms of time, it can reach the weekly supply zone before the FOMC meeting.
When the weekly supply zone is reached, a retracement occurs because it is a resistance line. If the employment indicator is not good, it will rebound in the new daily demand zone below, and the daily upward wave will continue as a monthly correction process. If so, the rally could continue until next month's employment data is confirmed.
Third, if employment indicators are good or interest rate hikes continue, the dialy bullsh pattern will break and become a correction pattern. After the weekly correction ends, there will be a weekly downtrend again.
My personal view is that gold will rise soon because I am convinced that an additional monthly correction is necessary for the dollar to rise again.
good luck.