Gold has been on a retracement since the May 4th high. At the end of last week it broke but failed to close below the 61.8 fib of the last impulse move up, this is an interesting level as it may indicate the retracement is done?
To the upside though we have a falling dynamic trendline that's acted as resistance since the early May peak. That peak at 2066 matches the peak in March, which could be a double top (however needs to break 1680 neckline for confirmation of a full reversal imho).
So are we looking at a small retracement, or the start of a reversal? It's too early to say, however looking at DXY we seem to be building momentum, and if we see further strength this week in the USD then this should put more pressure on Gold, and I expect a fall-back to support around 1865.
Breaking the trendline and resistance to the upside, if confirmed with a breakout and retest of the descending trendline, should see us return to resistance around 1975.
Personally I think gold is reversing, I believe we will see more USD strength, and Gold will either drop from here, or drop from the 1975 level, without reaching May's high again for some time.
As always I'm monitoring trendlines and the LTF's for any suitable entries.
To the upside though we have a falling dynamic trendline that's acted as resistance since the early May peak. That peak at 2066 matches the peak in March, which could be a double top (however needs to break 1680 neckline for confirmation of a full reversal imho).
So are we looking at a small retracement, or the start of a reversal? It's too early to say, however looking at DXY we seem to be building momentum, and if we see further strength this week in the USD then this should put more pressure on Gold, and I expect a fall-back to support around 1865.
Breaking the trendline and resistance to the upside, if confirmed with a breakout and retest of the descending trendline, should see us return to resistance around 1975.
Personally I think gold is reversing, I believe we will see more USD strength, and Gold will either drop from here, or drop from the 1975 level, without reaching May's high again for some time.
As always I'm monitoring trendlines and the LTF's for any suitable entries.