Gold dropped today and tries to delete the yesterday’s minor increase. The yellow metal is still under massive selling pressure, it could reach fresh new lows in the upcoming period because is located deep in the seller’s territory. Price dropped as the USDX is still trying to jump above some very important resistance levels.

Gold failed to take out an important upside target that’s why is going down. The rate moves sideways on the short term, but I hope that we’ll have a clear direction very soon and a fresh trading opportunity. A USD’s increase will force the Gold to drop further in the upcoming period.

Gold dropped even if the Aussie has appreciated versus the greenback, the AUD/USD seems poised to start an important rebound in the upcoming days. The Aussie rallied also because the Reserve Bank of Australia has maintained the Cash Rate unchanged, at 1.50%, matching the economists’ expectations.

The  Australian Retail Sales have increased by 0.5% in the previous month, beating the 0.3% estimate and the 0.1% growth in the former reading period, while the AIG Services Index was reported at 51.7 points, higher versus the 51.4 in the former reading period.  The AUD ignored the Current Account release, the indicator has come in worse than expected, it was reported at -9.1B, lower versus the -8.8B estimate and compared to -9.7B in the former reading period.

Price is traded below the WL1 of the major red descending pitchfork and below much below the 50% Fibonacci retracement level, the next downside target will be at the 61.8% retracement level. Only a valid breakdown below the 61.8% level will signal a further drop towards the median line (ml) of the minor red descending pitchfork.

It could also be attracted by the confluence area formed between the median line (ml) with the second warning line (WL2) of the blue ascending pitchfork. A valid breakdown below the median line (ml) will signal a larger drop, this scenario will take shape if the FED will decide to hike the rate on December 13.