Bullish flag/pennant on GOLD. Possible sharp reversal.
As we can see, the good ol' Dollar is THRASHING the yellow metal (GOLD). But as our analysis indicates to us, the Greenback's reign won't last for long as we can see that it is currently approaching the pennant/triangle support line/zone.
With that being said, I believe that once the price tests our support line, we can expect a strong bullish movement and possibly even a breakout to the upside.
I am currently bearish on the pair just until it hits the support line or somewhere near there. After that I'll be joining the bullish movement until it breaks the pennant resistance line.
Alternatively, you can wait for the consolidation to fade out, in that case you will have to wait for a downward or upward breakout before entering a trade.
HAPPY TRADING!
With that being said, I believe that once the price tests our support line, we can expect a strong bullish movement and possibly even a breakout to the upside.
I am currently bearish on the pair just until it hits the support line or somewhere near there. After that I'll be joining the bullish movement until it breaks the pennant resistance line.
Alternatively, you can wait for the consolidation to fade out, in that case you will have to wait for a downward or upward breakout before entering a trade.
HAPPY TRADING!
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