XAUUSD Short Term Outlook
Hello guys!
After this crazy week in gold, this is my idea on the current short term outlook.
It seems to be forming some sort of bullish ascending triangle for the last few months.
Each buying phase has accumulated about a 10% gain only to lose about 50% of this gain in a correction. This doesn't have to happen again but considering the size of the move in such a short time, it's possible to see some profit taking and some fresh selling next week, specially if we see a strong CPI. Bear in mind that Quad Witching season is approaching too and this could see a lot of profit taking on many assets, creating demand for USD.
DXY looks like it could rebound slightly in the short term. If this happens, it will put some pressure on gold.
This said, gold is super attractive now given the macroeconomic situation. This doesn't mean buying blindly at these levels but potentially layering positions in pullbacks.
On the chart I played a ghost feed of a possible scenario to unfold on the pair.
All the best!
After this crazy week in gold, this is my idea on the current short term outlook.
It seems to be forming some sort of bullish ascending triangle for the last few months.
Each buying phase has accumulated about a 10% gain only to lose about 50% of this gain in a correction. This doesn't have to happen again but considering the size of the move in such a short time, it's possible to see some profit taking and some fresh selling next week, specially if we see a strong CPI. Bear in mind that Quad Witching season is approaching too and this could see a lot of profit taking on many assets, creating demand for USD.
DXY looks like it could rebound slightly in the short term. If this happens, it will put some pressure on gold.
This said, gold is super attractive now given the macroeconomic situation. This doesn't mean buying blindly at these levels but potentially layering positions in pullbacks.
On the chart I played a ghost feed of a possible scenario to unfold on the pair.
All the best!
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