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.
EUR/USD has breached support
2020-04-17 • Updated
EUR/USD had been testing the support line connecting March and April lows. On Thursday, the pair slipped below this line. The following retest of 1.0880 provided resistance and made the price turn down. Currently we are witnessing a kind of a “Falling three” pattern on the H4 chart. A close below 1.0815 will open the way down. The first target will be at 1.0770 (April 6 low). Still, as the move will confirm a break down below the triangle, we may see a deeper move down, to 1.0700/1.0650. The technical picture will improve only if EUR/USD manages to return above 1.0880.
Trade idea for EUR/USD
SELL 1.0805; TP 1.0770; SL 1.0820
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