The Gold price continues to move higher after the minor drop, is approaching the 1244.69 last week high, could jump above this obstacle if the US dollar will drop further versus its rivals. Price has extended the yesterday’s gains and is expected to increase further if the USDX will drop further in the coming days.
We had an awful drop on the USDX today, is very heavy on the short term again, has failed to reach the 102.05 static resistance, signalling that is still too overbought to stay higher, could hit new lows on the short term.
The greenback is going down again as the USDX has failed to escape from the descending pitchfork’s body, we had a false breakout above the upper median line (uml) and now the rate edges lower. The current drop is natural after the failure to close on the upper median line (uml), most likely will approach and reach the 99.84 static support in the coming days, wil hit this downside obstacle if will ignore the 100.00 psychological level. The index is expected to be attracted also by the median line (ml) of the descending pitchfork, so a further drop will weaken the USD, the Gold will take advantage of this situation and will increase further.
The gold goes higher after the retest of the 150% Fibonacci line and now is approaching the 50% Fibonacci line (descending dotted line), is somehow expected to increase further after the breakout above the 50% retracement level and above the median line (ML) of the major descending pitchfork. Could be attracted by the major confluence area formed by the upper median line (UML) of the descending pitchfork with the lower median line (lml) of the former ascending pitchfork as long as is trading above the 150% Fibonacci line (ascending dotted line). Will approach and reach the mentioned confluence area only if will have enough directional energy to jump and to stabilize above the 50% Fibonacci line (descending dotted line) and above the 38.2% retracement level.