The Gold price plunges and resumes the last two day’s drops. Actually, it has plunged as the USDX rallied aggressively and has climbed above the 93.43 previous high.
It remains to see what will happen on the USDX because the rate has retreated a little in the last hours. The perspective remains bullish on the USDX. I’ve said that we may have only a temporary drop because the index could try to retest some of the broken resistance levels (resistance have turned into support).
The Aussie and Kiwi have edged lower as well and have forced the Gold to drop significantly as well. The Aussie plunged after the Australian Monetary Policy Meeting Minutes were released and after the RBA Assist Gov Debelle speech.
Unfortunately, the Chinese Retail Sales have increased only by 9.4%, less versus the 10.0% estimate, the Fixed Asset Investment rose only by 7.0%, less compared to the 7.4% estimate and versus a 7.5% growth in the former reading period. The only support was received from the Industrial Production, which it has increased by 7.0%, more versus the 6.4% estimate and after the 6.0% growth in the former reading period.
The USD rallied even if the US Retail Sales data have come in worse than expected. The Retail Sales have increased by 0.3%, less versus the 0.4% estimate, while the Core Retail Sales have increased only by 0.3%, less compared to the 0.5% estimate.
Price dropped after the failure to approach and reach the outside sliding line (SL). It is now located much below the WL2 of the ascending pitchfork and below the upper median line (uml) of the red descending pitchfork.
Technically, it will be expected to drop towards the median line (ml) of the red descending pitchfork after the failure to stay above the upper median line (uml).