1W support tested. Significant upside potential. Long.

4 ก.ค. 2018

XAUUSD approached the December 2017 bottom levels at 1,236.50 and was strongly rejected higher on a very strong 4H Three Outside Up bullish sequence (STOCHRSI = 94.347, Highs/Lows =3.8071, BBP = 14.1180). With DX still struggling to break the 95.00 - 95.25 Resistance zone and after multiple failed attempts, and the bond markets rising amid a world-wide stock selling due to new trade escalations, we believe that Gold is both technically and fundamentally geared to start reversing into a new bullish medium term leg, maybe even as aggressive as the pace with which it declined (blue curve). Thursday's ADP Nonfarm Employment Change and Friday's Nonfarm Payrolls/ Unemployment Rate are the catalysts that may lead us to the first and second targets (1,267.00 and 1,274.50). Final TP = 1,284.12.