Gold Reached The Support On The Daily, now what ?
Earlier today I posted this update poiting out that Gold broke key support on the smaller time frame and is now turning bearish with support in the 1292 area:
We did reach the support level but way too quickly so it was situated a bit lower. The price is now pausing for a while yet there was no strong reaction signaling this support is not very strong and probably will be breached to the downside
leaving the 1248-1255 area depending on when it is hit as potential next stop for Gold.
This is confirmed in the new channel in the Dollar Index showing a lot of strenght and the current action in the DXY does not signal a top, yet.
If the DXY makes a pullback Gold might try to bounce a little but honestly this does not look very good for Gold at this point.
We did reach the support level but way too quickly so it was situated a bit lower. The price is now pausing for a while yet there was no strong reaction signaling this support is not very strong and probably will be breached to the downside
leaving the 1248-1255 area depending on when it is hit as potential next stop for Gold.
This is confirmed in the new channel in the Dollar Index showing a lot of strenght and the current action in the DXY does not signal a top, yet.
If the DXY makes a pullback Gold might try to bounce a little but honestly this does not look very good for Gold at this point.