Personally, I think a Chart should be presented with some Commentary, so I won't pick holes.
Also I don't care much for indicators (which are also un-named, but that doesn't concern me - it might concern others, no idea)
My own view (and I have presented many charts with Commentary, so won't repeat the Chart...well maybe I will...) is that:
a) the current uptrend remains intact
b) we are seeing a normal pullback, consolidation, congestion etc...see c) below
c) XAUUSD has been in a multi-month trading range immediately post-Brexit thru last Friday, several times just narrowly holding support at the bottom of that range (1,302), a critical level. 1,375 is the top of the trading range.
We remain closer to the bottom of the range than the top, but it has held the support. Also, as an aside, we have three (3) lower highs, commencing with the cluster of upper wicks, early July, early August, and the first week of September.
For those who believe in Chart Patterns, one could say this is a descending triangle (always bearish).
Another might see a down trending channel from the early July highs (also bearish)
Another might see a rectangle (bullish continuation pattern). Another might say it's a symmetrical triangle (drawing the upward line from the Brexit day low) - again bullish. A Poster (on another thread) suggested a falling wedge (bullish - typically).
So, I just don't go there.
Friday's candle closed almost exactly half-way into the body of the important red candle of 31 Aug. (see red arrow, and yellow ellipse), which launched the last rally (last Friday Close 1,309.72).
The Open / Close of 31 Aug were 1,310.60 and 1,308.55.
This is not a co-incidence. This is the Market Makers (MM's) at work, pushing the price down slowly, similar to the price action preceding the NFP Release of 2 September.
Based on these price mechanics and market structure, I'd expect the MM's to push the price down to (or slightly below) Support coming into FOMC Meeting of next Tues / Wed , take out any remaining stops, so spooking market participants, and then rally on the news (whatever the decision might be).
That's my best anticipation of how it might play out. There is never certainty.
If proven wrong, and support is decisively broken we head into the Brexit day body which wouldn't be a good thing for gold longs.
XAUUSD - DAILY
