Early this week Gold rebounded on the 1,266.70 level which on 1W terms is a Higher Low on the long term bullish channel (RSI = 51.902, ADX = 38.770, MACD = 8.470, Highs/Lows = -3.7236) that started on the August 2018 low. If this level gets crossed then this long term bullish trend is invalidated and the price can potentially test 1,200.
On the other hand 1D is a standard Channel Down (RSI = 48.393, MACD = -5.880, Highs/Lows = 0.0000) with 1,296.35 its potential Lower High. Breaking above this level shouldn't be enough to sustain a bullish reversal on 1D. The price needs to break above the previous Lower High (1,310.85) to confirm it.
Those are the break out levels so trade accordingly. At the moment we favor the longer term pattern, which is bullish after the rebound on the 1,266.70 1W Higher Low. Our long term target is in the region of 1,340 - 1,350.
My advice for Gold outlook short-term would be to watch tradingview.com/chart/?symbol=FX_IDC:USDCNY very closely.
If USD goes under 6.7 CNY, Gold will take off. Just my opinion.
So far, the fact that Gold did not go significantly below the $1275 mark was, in my view, very important, and testified to several strong long-term supports that exist on this level.
IMHO, should it want to test $1255 short-term again, it will most likely rebound. And once it rises above $1288-$1290 it will just take off and fly so fast you can not look. Because: Wave 2, which started on February 20, would be completed - Wave 3 commences...
If USD goes under 6.7 CNY, Gold will take off. Just my opinion.
So far, the fact that Gold did not go significantly below the $1275 mark was, in my view, very important, and testified to several strong long-term supports that exist on this level.
IMHO, should it want to test $1255 short-term again, it will most likely rebound. And once it rises above $1288-$1290 it will just take off and fly so fast you can not look. Because: Wave 2, which started on February 20, would be completed - Wave 3 commences...