The Gold increased today and climbed above two resistance levels (support turned into resistance), but the buyers weren’t strong enough to hold the price there. Price slipped during the European trading session and continues in the US session, could approach a very strong dynamic support in the upcoming days, remains to see how will react. Technically is somehow expected to drop further and to escape from the ascending channel’s body, right now will be better to stay away from the yellow metal because we don’t have any trading opportunity, but I hope that we’ll have one very soon.

The today’s rebound was natural as the USD continues to drop on the short term versus its rivals, the USDX plunge aggressively  and looks unstoppable right now, the index is approaching the 96.50 psychological level, technically is expected to drop much below this level and could approach the 96.30 previous low.

Gold decreased in the last hours as the Kiwi and Aussie have lost significant ground versus the greenback after the morning rally. The NZD/USD reached new highs in the morning, even if the New Zealand Trade Balance decreased from 536M to 103M, the surplus dropped much below the 420M.

Price failed to stay above the upper median line (UML) of the major descending pitchfork and above the 38.2% retracement level, could challenge the first warning line (WL1) of the ascending pitchfork again, a valid breakdown will open the door for more declines in the upcoming period. We’ll have a great selling opportunity if the rate will escape from the ascending channel and if will retest the upper median line (UML) of the major descending pitchfork.

I’ve said in the previous analyze that a further increase will be confirmed only if will climb and will stabilize above the UML and above the 38.2% retracement level. Technically is somehow expected to drop further after the failure to reach the lower median line (LML) of the ascending pitchfork and after the failure to reach the 23.6% retracement level, but we have to wait for a confirmation that will resume the corrective phase.