The yellow metal dropped after a minor rebound, could drop much deeper if the USDX will climb much higher. Is premature to say that we’ll have another leg lower in the upcoming period, we have to wait for a fresh trading signal before we take action again.

Gold continues to move sideways on the short term, is trapped within a minor range, a breakout will bring us a perfect trading opportunity.

The is trading in the red as the dollar index has managed to rebound on the short term, a further USDX’s growth will force the pair to drop in the upcoming period, but we need a confirmation that this scenario will take shape.

Has dropped as the Aussie has decreased versus the USD, the Australian data have come in mixed in the morning, the Employment Change dropped from 38.0K to 14.0K  in June, much versus the 14.4K estimate, while the Unemployment Rate remains unchanged at 5.6%  for the second month in June, matching expectations.

Moreover the NAB Quarterly Business Confidence remains steady at 7 points in the second quarter. On the other hand, the US data have come in mixed as well.

Moves sideways on the short term, between the 23.6% and the 50% retracement levels, the perspective is bearish as long as is trading below the upper median line (UML) of the major descending pitchfork and below the upper median line (uml) of the minor descending pitchfork. Only a valid breakdown below the sliding line (ascending dotted line) will confirm a large drop in the upcoming period, we’ll have a great selling opportunity if will slip below the SL and if will retest one of the UML or the upper median line (uml) of the minor descending pitchfork.

More sellers will involve of the rate will take out the static support from the 50% retracement level, I want to remind you that a jump above the mentioned resistance level and above the outside sliding line (descending dotted line) will validate a further upside movement.