Gold extends the upside movement as the USD is ruined by the latest poor US data. The yellow metal rallies amidst the global tensions. Price has reached another upside target, we’ll see how will react in the upcoming days. A further USD’s drop will help the Gold to climb much higher in the upcoming period, but remains to see what will happen on the USDX, which could be too oversold to continue the bearish movement.

USDX plunged and resumed the last four day’s drop, was almost to reach the 91.00 psychological level, but was stopped by the 91.02 level.

Gold retreated a little in the last hours, failing to stay near the 1357.50 today’s high, now is trading right above the $1351 per ounce. Gold rallied also because the Aussie has touched fresh new highs versus the greenback. The AUD received support from the Australian Home Sales, which has increased by 2.9%, beating the 1.0% estimate and the 1.2% growth in the former reading period. The AUD ignored the poor Chinese data, the Trade Balance decreased from 321B to 287B in August, even if the economist have expected to see an increase to 337B, the USD-Denominated Trade Balance dropped as well, from 46.7B to 42.0B, ignoring the 48.4B estimate.

You can see that the rate has jumped above the lower median line (LML) of the major ascending pitchfork, but failed to stay there and now is trading much below it. A false breakout followed by a retest will confirm a minor drop on the short term. However, a valid breakout will signal a further increase towards the 1374 horizontal resistance.

You can see that we had another false breakout above the LML in April, we may have a selling opportunity if the rate will fail to close near the lower median line (LML). Right now the perspective remains bullish, so we can’t talk about a retreat towards the 150% Fibonacci line.  Only a USDX significant rebound will confirm a minor corrective phase, which will be natural after the impressive rally.