If you believe, like I do, that DXY is retracing (or maybe reversing), then it stacks up that Gold will follow a negatively correlated path.
On the 4hr we've seen a bearish engulfing candle and have already broken the 4hr trendline, we quickly retraced back before strong rejection to the downside. I believe we'll see short term strength to mirror DXY retracement, before a big move down. RSI is not oversold which is the only area of concern for this idea.
I'll be keeping an eye on this pair, looking for opportunities to go short around the 1900 mark, using LTF's.
Really not sure whether DXY will retrace to the 0.5 FIB and then continue lower (good for gold), or we're seeing a reverse, and if this is the case then I expect gold to plummet over the next few months.
On the 4hr we've seen a bearish engulfing candle and have already broken the 4hr trendline, we quickly retraced back before strong rejection to the downside. I believe we'll see short term strength to mirror DXY retracement, before a big move down. RSI is not oversold which is the only area of concern for this idea.
I'll be keeping an eye on this pair, looking for opportunities to go short around the 1900 mark, using LTF's.
Really not sure whether DXY will retrace to the 0.5 FIB and then continue lower (good for gold), or we're seeing a reverse, and if this is the case then I expect gold to plummet over the next few months.