GOLD - XAUUSD Top-Down Analysis
Hello Traders,
Here is the Top-Down Analysis of GOLD - XAUUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > After reaching its all time high and ending the said month in Doji price pulled back for correction. After massive impulse we expect price to correct at least till 0.382 FIB level on last monthly impulse. Price did make an attempt to drop towards 0.382 level but could not reach it. We can expect price to drop till this level.
W > Placing FIB on last weekly impulse we can see that 0.382 and 0.618 coincide perfectly with previous (2011) high and candle open position respectively. Price dropped in between 0.5 and 0.618 level of weekly impulse and started moving upwards but dropped back down last week.
D > Price reached weekly supply zone and dropped Price is now stuck in a triangle. We expect price to drop till 0.382 Fib level. We will have 3 targets.
Target 1: 4H demand zone
Target 2: 0.382 Fib level
Target 3: Daily demand zone
As per COT GOLD again saw addition of Long but a major chunk of Short got added, reducing net positions, making Gold improve its position for the said week. Overall open interest for Gold again reduced during the said week. Gold weakened last week.
With opening of fresh Short positions are Institutions preparing their defence against possible strengthening of DXY? Probably yes. US elections will make things uncertain and we can see institutions preparing their backup plan.
4H > Price is now testing support of triangle, it can break this support now or possibly face rejection again to the upside to gather more liquidity before making attempt to the downside.
This idea will get invalidated if price move up and breaks the supply zone.[/I]
Pair Correlation > XAUUSD has negative correlation with USDCHF and USDJPY.
Thank You
AP17FX
Here is the Top-Down Analysis of GOLD - XAUUSD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > After reaching its all time high and ending the said month in Doji price pulled back for correction. After massive impulse we expect price to correct at least till 0.382 FIB level on last monthly impulse. Price did make an attempt to drop towards 0.382 level but could not reach it. We can expect price to drop till this level.
W > Placing FIB on last weekly impulse we can see that 0.382 and 0.618 coincide perfectly with previous (2011) high and candle open position respectively. Price dropped in between 0.5 and 0.618 level of weekly impulse and started moving upwards but dropped back down last week.
D > Price reached weekly supply zone and dropped Price is now stuck in a triangle. We expect price to drop till 0.382 Fib level. We will have 3 targets.
Target 1: 4H demand zone
Target 2: 0.382 Fib level
Target 3: Daily demand zone
As per COT GOLD again saw addition of Long but a major chunk of Short got added, reducing net positions, making Gold improve its position for the said week. Overall open interest for Gold again reduced during the said week. Gold weakened last week.
With opening of fresh Short positions are Institutions preparing their defence against possible strengthening of DXY? Probably yes. US elections will make things uncertain and we can see institutions preparing their backup plan.
4H > Price is now testing support of triangle, it can break this support now or possibly face rejection again to the upside to gather more liquidity before making attempt to the downside.
This idea will get invalidated if price move up and breaks the supply zone.[/I]
Pair Correlation > XAUUSD has negative correlation with USDCHF and USDJPY.
Thank You
AP17FX
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.