As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
AUD/USD is consolidating
2019-12-09 • Updated
SELL 0.6805; TP 0.6770; SL 0.6820
BUY 0.6660; TP 0.6680; SL 0.6650
SELL 0.6685; TP 0.6630; SL 0.6905
Last week AUD/USD managed to take off from the 0.6760 area. Then it consolidated between 0.6855 and 0.6810. On the downside, the 100- and 50-day MAs support the pair. These lines made a positive intersection. Daily oscillators are moving higher. This means that the Aussie has potential to test the long-term downtrend resistance line in the 0.6880 area.
On the H4, we can see that the consolidation is taking form of a symmetric triangle. A false break to the upside took place on Friday before the pair stabilized at the 200-period MA (0.6830). Beware the volatility related to the US-China trade war.
The trading strategy is either to look for buy patterns in the 0.6810/20 area or to sell on the break below 0.6810 targeting 0.6770. The advance to the 0.6880 area may be a reason to look for sell opportunities.
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