If the DXY decides to fall, I expect gold to change of trend. Actually the trend has been rising since before the 2000. So it might continue the trend.
Last fall from 1900 has a fib-retracement which might have been completed or will be completd at 1156 area. So call me crazy but I think this is going to be a start of a new bullish season for the XAUUSD pair.
Also there is a bullish divergence in the weekly chart, but let's see what the DXY does and then we will know the true intentions of gold :).
short term i still want gold to test that long term trendline after it tested at 1130 and 1140 so logically 1150 should then create a rising triple bottom - BUT if it broke below then question will be raised and invalidate our theory.
Short term, I see May often as the month where gold is sold hard and June a reversal. Placing a long at 1150 -1160 levels with stop at 1140 provide great RR to long it
ElPatron.Y
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I agree on your strategy, if we go below 1150 this could be a bad sign for gold.
RJHumphries7d
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It is a mystery to me why gold is falling. I read reports of China buying all it can get its hands on and I also see an impending raise in interest rates in the US. The UK election this week will go badly for the FTSE if we have an inconclusive result, which looking at the polls we will, despite the fact the index flutters around record highs. All this adds gloom to the global outlook and makes me think Gold is Bullish certainly in the long term and make me think a long at 1150-1160 could be a very wise move. Thoughts???
Short term, I see May often as the month where gold is sold hard and June a reversal. Placing a long at 1150 -1160 levels with stop at 1140 provide great RR to long it