As our last gold analysis was canceled but price moved accordingly and is still within great R:R, we have decided to re-engage this metal
Price has set itself a beautiful expanding channel pattern with an accompanying ABCDE corrective sequence. As price currently sets on (E), we should see price slump down further
The bear scenario is currently accepted...
Reasons for short:
1. Price met strong resistance at upper downward trend line and also broke the upward trend line.
2. MACD shows market is in downside.
3. Tonight's data from the US is likely to be in favor of DXY
Thus, Short at around 1.13950. Take profit at around 1.13250
In the short term chart (60 min) I see something very bullish developing. But that doesn't change the fact that risk is more appealing if bets are to the downside. If I'm wrong on this short I may look to go long.