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 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.
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!