Possible Scenarios To Prepare For
Scenario #1 Bullish Start With Dollar Falling Steadily
Gold breaks through 1890 and starts its strong push past 1900 in this scenario 1880 would not be able to be broken once gold pushes past 1900. We could see 1950 again or even higher. I would expect 1950 to act as a strong resistance and traders to take some profit here.
Scenario #2 Pull back to 1850-1865 range then Gold XAUUSD Begins to go Higher
I could see if the Dollar gets some initial strength then begins to fall again it could fall then consolidate at this range. I would then want to see some confirmation candles to show this is a reversal area. We would then definitely need to see 1880 again rather soon to open the door for the bullish continuation towards as high as 1950.
Scenario #3 Dollar Strengthens steadily and does not stop its push higher and gold breaks through 1850 and begins to fall more.
If the dollar is strong and this support at 1850 is broken and we have candles that are very bearish I think this could really get ugly for gold if it breaks even lower at 1830/35. From this scenario the door to significantly lower prices below 1800 are possible.
Key Areas
**1950-1960 strong resistance area in past a possible target for longs ....if this is breeched a pull back is possible then if we get more strength 2000 and all time highs are getting significantly more likely. Given dollar is also week.
*1875-1880 key support area we hold before open
**1850 is a super important support area and holds the trend up I see it as if this area is strongly broken that is not good for longs (1845-1840)
**1835 area is where if we get to I would see as I am mostly bearish now
Scenario #1 Bullish Start With Dollar Falling Steadily
Gold breaks through 1890 and starts its strong push past 1900 in this scenario 1880 would not be able to be broken once gold pushes past 1900. We could see 1950 again or even higher. I would expect 1950 to act as a strong resistance and traders to take some profit here.
Scenario #2 Pull back to 1850-1865 range then Gold XAUUSD Begins to go Higher
I could see if the Dollar gets some initial strength then begins to fall again it could fall then consolidate at this range. I would then want to see some confirmation candles to show this is a reversal area. We would then definitely need to see 1880 again rather soon to open the door for the bullish continuation towards as high as 1950.
Scenario #3 Dollar Strengthens steadily and does not stop its push higher and gold breaks through 1850 and begins to fall more.
If the dollar is strong and this support at 1850 is broken and we have candles that are very bearish I think this could really get ugly for gold if it breaks even lower at 1830/35. From this scenario the door to significantly lower prices below 1800 are possible.
Key Areas
**1950-1960 strong resistance area in past a possible target for longs ....if this is breeched a pull back is possible then if we get more strength 2000 and all time highs are getting significantly more likely. Given dollar is also week.
*1875-1880 key support area we hold before open
**1850 is a super important support area and holds the trend up I see it as if this area is strongly broken that is not good for longs (1845-1840)
**1835 area is where if we get to I would see as I am mostly bearish now