After my last weeks target has been reached, I am waiting if we get a breakout. With GDX/HUI not following Gold and DXY rather going upwards, I expect Gold (in XCU) correcting back to the Neckline of the double top. With this correction a Head and Shoulders Formation of XAUUSD will also be finished.
with DXY consisting of :
Euro (EUR), 57.6% weight
Japanese yen (JPY) 13.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight
Swiss franc CHF (the rest..)
we are talking about 69.5 % of the DXY Basket being affected. With GBP having an at least downward potential of 20% and the EUR of 10 % (as being discussed also here) the effect will be a min. 8.6 % upward movement of DXY that may be compensated to 7-8 % by a strong strengthening of JY/CHF. With Gold being inversely correlated to US $ Strength it is unreasonable to bet on an upward movement of Gold.