XAU - The line in the sand is now clearly visible..
FX_IDC:XAUUSD Gold Spot / U.S. Dollar
XAU and XAG are up against key resistance points. The line in the sand is clear. Encouraging signs from GDX and DXY with the large cap PM stocks having broken north of the flag and the dollar rejected from the channel (see previous posts). We now need to be careful and await XAU and XAG to close and hold north of the clear resistance levels -we should then see the bullish momentum increase. For now there is downside risk from the resistance levels so we need to be cautious before a break north supports our bullish view.
Not good price action at key levels of XAU and XAG so tactical longs are closed and waiting to see if we need to go short. Need a sustained hold above the downtrend to go long again, and in the meantime need to evaluate whether to go short. Neutral.