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 counterattacking
2019-11-11 • Updated
TP1 1250 TP2 1263 TP3 1287
On the daily chart, XAU/USD pulled back after reaching 113% target of the “Double top”. Bulls are trying to move gold towards 23.6%, 38.2%, and 50% of the wave CD.
On H1, bulls managed to trigger “Crab” pattern with the target at 161.8%. Buyers want to return gold to the previous consolidation range of 1205-1235. To trigger a “Shakeout-Fakeout”, gold has to pull back to its middle (1220).
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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