Good evening everyone,
Lets take a look on both charts, Gold at left and Dolar Index at right
Talking about we can see its moving inside a big channel for a long time now, the top of the channel is the 1350 level and the bottom is ~1205 level with a major support at 1185.
Now after a huge rally gold might pullback to lower levels before continue the rally to 1350.
If we look at fibo from the bottom of the channel to current swing high we see that the stronger supports are 1250 and 1235 which coincide to the weekly 200SMA.
We can see that Gold is already overbought and we have a bearish hidden divergence there.
But usually if we look at gold we must look at the Dolar right? Usually they have an inverted correlation.
The Dxy is currently on uptrend since FEB 18 and now its respecting the 50 EMA as support, RSI is not overbought and despite the bearish divergence i can see potential upside to 97.50 strong resistance zone.
So what do i expect now?
Gold correction to keep going for a while, at least from pure T.A point of view.
Any news about commercial war EUA x CHINA can make things go crazy really fast so, lets be careful when entering on these waters, at least for long term.
This Trading Idea is to be used for educational purposes only. This idea does not represent financial advice and its NOT a signal. You should trade based only on your own technic and knowledge.