Gold rally shows signs of depletion / # 1,778.80 Next for FX: XAUUSD By GoldenBear88
Technical analysis: Obvious developments like Gold finally tested (or better still testing) # 1 796.80 I’ve been referring to from the last week of trading, which is the symmetrical level to the September 24 high (last year’s downtrend low). Gold was showing high durability throughout the US session and nearly hit # 1,792.80 seconds of strong resistance (# 1,792.80 – 1,800.80 resistance cluster and seller’s last line of defense), following another stage of sale on DX . This is a strong short term to consider as I expect the 4 hourly chart to act accordingly and initiate a steady downtrend after today’s possible reject and the insignificant rise as a response to failed optimism and hopes for a recovery in DX. Also note that it’s there (Lower High’s), Gold found support during the May / June # 2019 breakout, and in a few sessions Price-action made a new leg. I spotted a good chance of repeating this sequence. The hourly chart 4 is already stabilizing while the is near complete neutrality indicating that the profit on the recent top has been taken (long term investors) and the setup again indicates that a fair technical sell sequence could be considered. If the EU delivers what I expect, I will be ready with my sell orders to pursue the sell gap # 1,761.80. I expect a rather distant session today, unless Wall Street brings turbulence, as price actions are between the very important # 2 benchmarks. I’m staying in the short and medium term with DX numbers as my main point of interest. I am still confident in the sales outlook but without medium term openness and price action still under a lot of questions (huge question mark), I will not rush to commit and endanger my capital with a volumetric position more important. The latest # 2 of # 2 Resistance breaks / recovery attempts have so far failed as my estimates say # 1,801.80 – # 1,805.80 is the maximum off current .