Gold have made a big impulse to the upside and is expected to reach $1309 this coming week. Looking at the on balance volume which is NOT making higher highs (at this current moment), indicates that the trend is still bearish and that the Midas Primary Resistance Curve (R1) will hold price for further momentum to the downside. However this only holds true if the on balance volume is closing without making a higher high/ or equal to recent highs together with price at the end of this month. My approach to this will be to add more sell orders at the price of $1309 (which is the yearly resistance) with the expectation and conclusion that price will close below R1 at the end of this month creating a wick to the upside before proceeding to make lower lows in the price of GOLD. If it does not, I am closing out all positions and reconsidering.
Considering that EUR/USD and XAU/USD are in correlation with one another, and that EUR/USD will soon resume its downward trend - this scenario seems likely to play out. However, a major change in trend which I see as very unlikely will mean to close the currently running sell positions and reconsider what is happening right now. In any case there will certainly be a reaction at $1309 because of the unfilled supply which means that stop losses can be moved to break even for any new positions that are added at the price of $1309, so adding positions at this level does not seem risky in my opinion as the 50 Day MA is also closing in (Blue line on the chart).
Considering that EUR/USD and XAU/USD are in correlation with one another, and that EUR/USD will soon resume its downward trend - this scenario seems likely to play out. However, a major change in trend which I see as very unlikely will mean to close the currently running sell positions and reconsider what is happening right now. In any case there will certainly be a reaction at $1309 because of the unfilled supply which means that stop losses can be moved to break even for any new positions that are added at the price of $1309, so adding positions at this level does not seem risky in my opinion as the 50 Day MA is also closing in (Blue line on the chart).
