XAUUSD Quick Friday Entry

FOREXCOM:XAUUSD   Gold Spot / U.S. Dollar
XAUUSD Quick Friday Entry

After Fridays colossal drop in XAUUSD on Thursday, the pair looks to be slightly shaky at pre American session. Dropping beneath 1770 on Thursday, XAUUSD rebounded and tried to cover some lost ground at the start of trading this morning (European session). Since then XAUUSD has pushed onto 1795 but looks weary as it tries to push for the psychological 1800 again. Slight resistance has already occurred at 1796 and I feel a double bottom is imminent on the 1H chart with us seeing the metal re-touch base with 1770 before the pair even starts to look bullish again. The outlook on rates has got the dollar excited and it doesn't seem to be fading away anytime today. The double bottom seems reasonable and just and the pair is still bearish in preparation for the final American session of the week. The dollar is having the best week in nine months and is currently sending bears scurrying with its strength, the direct correlation with gold is sure to stop any short term bulls riding a quick push to 1800.

1797 is the resistance the bulls are trying to fight with 1800 not far away either, the bulls have to fight a double stacked resistance as the SMA 10 Four Hour converges with the 61.8% Fib. Gold does have a minor support at 1789 but this should be easily broken by the bears with the dollar looking strong and gold having little reason to start the road to recovery so late in the week. 1781 is another support which is slightly stronger than the 1789 but support has been weak for gold this week.

The selloff isn't ending this early and it looks like its the dollars week.

Hope you enjoy!