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 is going to the abyss
2019-11-11 • Updated
TP1 1175 TP2 1165 TP3 1151
On the daily chart, bears managed to move XAU/USD to 113% target of the “Double top”. As gold approached the convergence area of 1175 (78.6% of the long-term bullish wave) – 1184 (113% target) increases the odds of a pullback. On the other hand, if the support breaks, the decline will likely continue towards 1151.
On H1, bears managed to form a “Spike and ledge” pattern and lead XAU/USD out of the 1206-1218 consolidation range. Use pullbacks of resistances for selling.
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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