XAUUSD: Gold may benefit of the consolidation of USD against EUR
Gold's general trend is not moving and on the medium term 1180 and even bellow is still on the track. However, there are some sign that USD is consolidating against EUR. If this is confirmed, then XAUUSD may benefit from that on a short term basis.
On a purely chartist approach, the short term red trend line may be broken towards 1260 which is a retracement towards 0.618. This is the maximum forseen at the moment.
Looking to the RSI, one can easily saw that the level is not yet oversold but was oversold for a too long period of time. Therefore an upside correction is mechanically "legitimate" although in the market the only legitimacy is the balance between the buyers and the sellers and this is the only through that may be used to fix the price.
A break above 1260 may also be a break above the MA50 which in a sens may be interpreted as an initial step towards a change of trend but yet there is no sign of a long lasting long trend on gold.
One should wait the increase of interest rate from FED and ECB to so a clear reversal of the trend.
On a purely chartist approach, the short term red trend line may be broken towards 1260 which is a retracement towards 0.618. This is the maximum forseen at the moment.
Looking to the RSI, one can easily saw that the level is not yet oversold but was oversold for a too long period of time. Therefore an upside correction is mechanically "legitimate" although in the market the only legitimacy is the balance between the buyers and the sellers and this is the only through that may be used to fix the price.
A break above 1260 may also be a break above the MA50 which in a sens may be interpreted as an initial step towards a change of trend but yet there is no sign of a long lasting long trend on gold.
One should wait the increase of interest rate from FED and ECB to so a clear reversal of the trend.
