The Gold plunges as the USD dominates the currency market on the short term. The yellow metal resumed the yesterday’s bearish candle and is almost to touch a next downside target. It seems too heavy to be stopped on the short term after the release of the US data. A further USDX’s increase will send the rate much lower on the short term.

Gold slides further as the USX has managed to jump above the 93.50 psychological level and to reach the 93.57 level. The next upside target will be at the 93.81 static resistance, personally I believe that will jump above this level if the United States will impress in the upcoming hours.

USDX is pressuring a dynamic resistance (support turned into resistance), but it seems motivated to ignore this obstacle. Only some poor figures will send the dollar index lower again.

The Gold drop after the Core Durable Goods Orders release, the indicator increased by 0.2% in August, matching expectations, while the Durable Goods Orders have come in better than expected, have increased by 1.7% in August, much more versus the 1.0% estimate and after the 6.8% drop in the former reading period. We’ll see how the price will react later after the Pending Home Sales will be released and after the FOMC Member Brainard speech.

Gold is almost to reach the long term 38.2% retracement level and the 50% retracement level drawn on the last upside swing. It seems poised to drop much below the mentioned static support levels and should reach and retest the first warning line (WL1) of the ascending pitchfork. A valid breakdown below the WL1 will confirm a further drop in the upcoming period. A further USDX’s increase will force the yellow metal to drop towards fresh new lows in the upcoming weeks.

The current drop is natural after the failure to close above the LML and after the failure to close near this resistance line. It could come down to test the 61.8% retracement level.