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.
Gold attacks the neckline
2019-11-11 • Updated
On the daily chart of gold, quotes came closer to the necklines of the Head and Shoulders pattern. A successful test of this line will open the way towards $1183 – 1188. In contrast, a rollback would lead to the consolidation in the range of $1230 – 1260.
On the hourly chart of gold, quotes move within the downward trading channel. The bears remain their control over the pair. The prepare for the attack of the June high. If it is tested successfully the rally will continue towards the target 200% in the AB=CD pattern. An important support is located near $1.231.
A comparative examination of the strength of the US-Dollar often gives tangible insight into the direction of Gold (XAUUSD). The chart above indicates the expectation of a bullish price reaction from the demand zone.
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