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 resuming the uptrend
2019-11-11 • Updated
BUY 1365 SL 1350 TP1 1395 TP2 1410 TP3 1425
BUY 1340 SL 1325 TP1 1380 TP2 1395 TP3 1410
On the daily chart of XAU/USD, the inability of bears to pull the pair below the support at 1302-1308 points at their weakness. Bulls managed to lead gold outside of the consolidation range of 1308-1340. This increases the odds of an advance towards 113% and 127.2% targets of the “Shark” and AB=CD.
On H1, XAU/USD formed a “Crab”. Advance above resistances at 1361 and 1365 will open the way up to 161.8%.
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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