GOLD has a correlation to the strength of USD, as a risk-off asset investors seek haven in the event of Dollar weakness (USD falls > GOLD rises). I'm sure there's more to it than that, be sure to check it out online for yourself.
Comments
As anticipated during the breakdown of the Monthly timeframe, looking at the Weekly you can see how we respected the 20/50 EMA wave and bounced to the upside. Considering the amount of deceleration looking left when we previously approached the upper level of the zone, and comparing that current price conditions, I foresee more upwards pressure this week in the form of consolidation. Monthly swings take much longer to develop and turn around than that say on of the Daily time horizon.
If I am to get short on GOLD it will be after a push to the upside into the 1330 region, or below the 1280 level. The only problem with getting short below 1280 is we'd be trading directly into the 20/50 EMA wave (which is a big negative trade confluence). This is an unnecessary risk in my opinion.
Key Note
Taking a short at the top of the range has less risk than shorting closer to the median / Weekly mid-level of the range.
Comments
As anticipated during the breakdown of the Monthly timeframe, looking at the Weekly you can see how we respected the 20/50 EMA wave and bounced to the upside. Considering the amount of deceleration looking left when we previously approached the upper level of the zone, and comparing that current price conditions, I foresee more upwards pressure this week in the form of consolidation. Monthly swings take much longer to develop and turn around than that say on of the Daily time horizon.
If I am to get short on GOLD it will be after a push to the upside into the 1330 region, or below the 1280 level. The only problem with getting short below 1280 is we'd be trading directly into the 20/50 EMA wave (which is a big negative trade confluence). This is an unnecessary risk in my opinion.
Key Note
Taking a short at the top of the range has less risk than shorting closer to the median / Weekly mid-level of the range.
