Gold is still very much in an uptrend and therefore it is possible for a further press to the upside.
Technical factors include: - Possible head and shoulders formation - Lower high - DXY increasing in strength - RSI decreasing in strength
Fundamental factors include: - Positive trade talks between the US and China - No intention of further interest rate cuts before the end of the year from the Fed
Setup is only valid once we see a break of the head and shoulders pattern to the downside below the 23.60 fib retracement (currently acting as support), and a clean break below the price of $1480. This was the last low within this formation.
Trade setup: Entry @ <1480 TP1 @ 1450 TP2 @ 1415 SL @ 1505 (just above the 23.60 fib and just above the $1500 psychological level)
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Now the head and shoulders is confirmed, i'm awaiting a pullback and retest of $1480 prior to entering.
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Poor US data sent gold higher than the $1480 area. Awaiting confirmation on another LH before considering a short position.
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Trade was never entered however congratulations to those who shorted the initial break of the H&S to $1465.