TECHNICALS:
Friday's bearish candle is now followed by an indecisive doji. USD strength put some pressure on Gold, but looking at the USD index, we could soon see further weakness in the currency and a rise in Gold.
The H1 trend shows a retracement near a structural support and a formation of a bullish ascending triangle, which if broken, could push the price to the upside.
The recent H1 downtrend is now obviously losing steam and further downside may be limited as of now.
POSITIONING:
Positioning in gold remains very bullish, with both commercials and non-commercials increasing their bullish bets. Score 10/10 (very bullish).
CORRELATIONS:
The chart above shows Gold and DXY. There is a slight bearish divergence at the moment, but the USD index is showing signs of a possible reversal (depth, projections, and slope of the trend.) Note that the DXY chart is inverted.
RISK SENTIMENT:
Mixed to slightly positive. Nevertheless, fundamentals support gold.
== SUMMARY ==
We remain bullish on gold. A break above $2,035 could see a retest of $2,046 (triangle profit target.)
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Friday's bearish candle is now followed by an indecisive doji. USD strength put some pressure on Gold, but looking at the USD index, we could soon see further weakness in the currency and a rise in Gold.
The H1 trend shows a retracement near a structural support and a formation of a bullish ascending triangle, which if broken, could push the price to the upside.
The recent H1 downtrend is now obviously losing steam and further downside may be limited as of now.
POSITIONING:
Positioning in gold remains very bullish, with both commercials and non-commercials increasing their bullish bets. Score 10/10 (very bullish).
CORRELATIONS:
The chart above shows Gold and DXY. There is a slight bearish divergence at the moment, but the USD index is showing signs of a possible reversal (depth, projections, and slope of the trend.) Note that the DXY chart is inverted.
RISK SENTIMENT:
Mixed to slightly positive. Nevertheless, fundamentals support gold.
== SUMMARY ==
We remain bullish on gold. A break above $2,035 could see a retest of $2,046 (triangle profit target.)
Please hit the "LIKE" button if you find this post useful. Also, don't forget to follow to get more trade ideas like this. Thanks!
