[GOLD] Approaching Resistance: USD Correlation
In this trading idea we are taking a deeper look into the Gold price (XAUUSD). The price is currently approaching the Resistance area with a local resistance at ~$.1870. We can expect some profit-taking here and a small retracement followed by a continuation of the trend.
The reasons why Gold is performing that well is the decreasing value of the Dollar (inflation, stimulus checks etc.). For comparison, I've added the EURUSD price (pink line) that shows the accurate correlation between the USD value and Gold.
This is not a trading zone for now. We want to observe the market for this week, and we look for a long-entry at a more reasonable price.
From a technical perspective, the price is overbought on the intraday charts with the daily to follow up. We can use the Fibonacci Retracement Tool or horizontal Support & Resistance in order to find a proper entry. I will update this idea during the next days.
The reasons why Gold is performing that well is the decreasing value of the Dollar (inflation, stimulus checks etc.). For comparison, I've added the EURUSD price (pink line) that shows the accurate correlation between the USD value and Gold.
This is not a trading zone for now. We want to observe the market for this week, and we look for a long-entry at a more reasonable price.
From a technical perspective, the price is overbought on the intraday charts with the daily to follow up. We can use the Fibonacci Retracement Tool or horizontal Support & Resistance in order to find a proper entry. I will update this idea during the next days.
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