gold, page-22937

Gold is blue line chart, candlestick is USDX 4H TF. Some positive correlation coming back as both are swinging to bullish momentum.



Blue line is gold, candlestick is SP500 4H. Soe positive correlation again of recent.

I am not quite sure what all this means. What I have observed since NFP came out, headline is weaker than expected and the reaction is correct, USD sold off as rate hike is that much more remote. As a consequence gold rallied. What is surprising was SP500 rallied on that figure. Are we back to bad news is good news stocks because liquidity is not taken away through potential rate hike?

So if the current positive correlation continues, I would want a strong SP500 which will pull gold up through the resistance $1241.50. This is a KEY level for me and 2 things can happen if price should test this level. Obviously it reverse or breakout. The DT will not act as 'new' support and a rather strong one should price rejects resistance and rotate back down maybe make another attempt to try to push through the KEY resistance.

Alternately price simple break through and keep going thereby pulls back eventually into 'new' support at $1241.50 forming a new base. I shall be looking at the SP500 momentum to gauge things.


USDX rejects the support with a fake out and reversed. Could this be in the process of forming the right shoulder in the H&S pattern? Or simply a double bottom on the way to break the top. Will see if there is follow through buying because all the risk pairs are responding in the sell off.

From a trading short term perspective, I wanted to play a reversal of Fiber, Cable or UJ (opposite) during the London open but prices just shot through Asian levels! There wasn't any setup for the reversal so I stood back and waited. Once past the kill zones, I see it as continuation bullish USD as shown in the chart of USDx above. So sidelines tonight. Come back tomorrow Asian session and see if there is a scalp setup.