Flat - oncoming higher-timeframe structure is a clear problem!
During the course of yesterday’s segment, the price of gold was met with strong selling from H4 supply at 1364.7-1360.9. Following comments from US President Trump regarding the strength of the US dollar, the currency rallied and thereby forced the yellow metal lower. As you can see on the H4 timeframe, the move saw price marginally whipsaw through a daily broken Quasimodo line at 1344.0 and touch the top edge of a H4 demand base at 1339.2-1342.3.
Despite this recent bout of selling, we do not see much active supply to the left of current price (check it out for yourself – note the wicks stabbing into supply before dropping lower) on the daily timeframe until price hits weekly resistance at 1375.5. The only grumble here, however, is the fact that there is a monthly support seen in play on the US dollar index at 88.50.
Market direction:
Taking into account how close weekly price came to connecting with weekly resistance at 1375.5, along with possible dollar buying from the USDX monthly support at 88.50, sellers could enter the fray. On the other hand, the price of gold remains in a strong uptrend at the moment and is currently testing a daily broken Quasimodo line at 1344.0, which are notoriously high-probability levels!
As is evident from the above, neither a long nor short seems attractive at the moment. Irrespective of the direction one selects, oncoming higher-timeframe structure is a clear problem!
Despite this recent bout of selling, we do not see much active supply to the left of current price (check it out for yourself – note the wicks stabbing into supply before dropping lower) on the daily timeframe until price hits weekly resistance at 1375.5. The only grumble here, however, is the fact that there is a monthly support seen in play on the US dollar index at 88.50.
Market direction:
Taking into account how close weekly price came to connecting with weekly resistance at 1375.5, along with possible dollar buying from the USDX monthly support at 88.50, sellers could enter the fray. On the other hand, the price of gold remains in a strong uptrend at the moment and is currently testing a daily broken Quasimodo line at 1344.0, which are notoriously high-probability levels!
As is evident from the above, neither a long nor short seems attractive at the moment. Irrespective of the direction one selects, oncoming higher-timeframe structure is a clear problem!
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