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.
XAU/USD: gold is afraid of the wedge
2019-11-11 • Updated
TP1 1171 TP2 1166 TP3 1125
On the daily chart, XAU/USD bulls are still hoping to form a “Crab” with a 161.8% target. To begin with, they need to conquer 1209 (23.8% of the bearish wave). Bears, on the other hand, are eager to pull the price below the suppot at 1185 and make another step towards triggering AB=CD с таргетом на 161.8%.
On H1, XAU/USD is forming a “Broadening wedge”. If gold renews September low near 1190, a further decline will follow.
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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