The gold price has broken the upper descending trendline, indicating strong bullish momentum.
A contra of my previous forecasting on gold.
I am not surprised as CHINA has answered back with a heavy retaliation against President Trump on its tariff hike, which has pushed the price of gold higher.
This theory has its confluence with the past price history of...
Gold is forming a descending wedge chart pattern from my point of view, which could indicate a strong bullish momentum.
However, this chart pattern is only valid when it has complete the wedge pattern. At this moment I am expecting the price to keep going south.
Below, is my marking for support level on different time frames.
RED line - Monthly
Gold have form a head and shoulders chart pattern. Indicating a stronger bearish trend.
And, price have almost touch critical area, or neckline. A break below 1281 will confirm a strong sell.
However, the behaviour of gold always like to send a false signal; false breakout.
As i posted yesterday on this chart. DXY has broken the 4h tf trendline and hovering above support. DXY have inverse correlation with EURUSD.
Here are the scenarios:
1. A potential push to the downside
2. A strong pullback to the trendline before price going south
3. Or the short positioning will be invalid if theres a strong bullish candle
Lets wait and see
DXY weekly chart shows strong momentum to the upside with the bullish trendline remain intact. The weekly chart has created a few Lower Highs pushing Dollar further north.
There is a strong possibility that Dollar could make a breakout next week with not much of a movement after NFP announcement earlier. Let's wait and see.
Price gracefully touched 1281 as I posted previously. There is no clear direction yet with the price hovering on a steady base at neckline. I am monitoring Dollar index closely to get a clear sentiment of DXY.
I am zooming in further in Daily TF, to get clarity on key Support & Resistance level. Previous Candle stick shows a strong rejection bar, giving a strong signal for declining supply to the downside.
However, I am still sceptical and alert at the neckline support.