Should the current weekly candle close beyond the this weekly Quasimodo level, then we see very little on the stopping prices from depreciating further down to the swap at 1027.6. However, right now, there looks to be a nice opportunity to buy Gold at the above said daily swap support, since it merges nicely with a bull pattern that completes just below it at 1061.7.
Nevertheless, given how strong the recent selling has been over the past month and the clear dollar strength right now, we would only be looking for a small bounce off of this daily level back up to the underside of 1074.6 – the weekly broken Quasimodo level. In addition to this, we would also require lower timeframe confirming price action (preferably on the 30/60 minute) to present itself before risking capital on this idea.
Levels to watch/live orders:
• Buys: 1063.4 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).
• Sells: Flat (Stop loss: N/A).