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 attacking
2019-11-11 • Updated
TP1 1222 TP2 1264 TP3 1285
On the daily chart, after XAU/USD reached 88.6% of the “Double top”, there was a natural pullback. Buyers found strength to trigger the “Crab” pattern and aim to continue the advance to 161.8% target. For now, gold has to settle above support at 1209.
On H1, XAU/USD keeps trying to reach 161.8% and 200% targets of “Crab” and AB=CD. To enter a long position, use the “Three touches” strategy.
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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