Traders are buying every dip. We rallied 6 weeks continuously.
It's time for a decline to the daily cycle low.
What could trigger a daily cycle low in this sentiment?
FOMC on 27th of July.
After this strong job data nothing stands in the way of the FED for a rate hike.
Actually that is their last chance before the elections. Everything is ready for that:
stocks are all time highs, the Brexit vote is done... Yellen will come out next week to prepare the market for 27th July.
The question is the next: will gold test the 1390-1400 ( target price counted from the ) or not. 1390$ also the the 2014 March intermediate high.
It's hard to imagine we can continue this rally without a DCL.
Forming after an advance, a hanging man signals that selling pressure is starting to increase. The low of the long lower shadow confirms that sellers pushed prices lower during the session. Even though the bulls regained their footing and drove prices higher by the finish, the appearance of selling pressure is there on high volume. On Monday we need bearish confirmation. The best would be a red candlestick on heavy volume without breaking Friday's daily high.
Though we might get a test of 1390-1400 $ first in the Asian session before the decline .
As today the dollar seems to be starting its decline gold will be tough to fall...