XAUUSD Moment of truth ?
NFP proved to be an interesting week. Majority of traders (myself included) were expecting lower prices on gold. However whenever the majority expect something, gold often does the opposite. The last daily and weekly candle are extremely bullish, and have broken above previous highs on the daily. This would lead people to believe XAU is now turning bullish. I have a few issues with this view.
Firstly, the liquidity that is lying below 2285 will have built up to the point that I find it hard to see gold flying to a new all time high without grabbing all that liquidity first.
Secondly XAU closed out the week, having just touched an imbalance left on the 4hr chart from a previous fall and taking the liquidity lying above the two previous spikes in the process.
Lastly, DXY structure is still bullish, there has been no break to the downside on the DXY chart. So on a technical basis DXY is still bullish.
If XAUUSD were to reverse, it would do so without alot of Bears on board. This would probably cause a sharp drop to the liquidity laying below 2285.
Next week will prove to be a defining week in the future trend of XAU.
Firstly, the liquidity that is lying below 2285 will have built up to the point that I find it hard to see gold flying to a new all time high without grabbing all that liquidity first.
Secondly XAU closed out the week, having just touched an imbalance left on the 4hr chart from a previous fall and taking the liquidity lying above the two previous spikes in the process.
Lastly, DXY structure is still bullish, there has been no break to the downside on the DXY chart. So on a technical basis DXY is still bullish.
If XAUUSD were to reverse, it would do so without alot of Bears on board. This would probably cause a sharp drop to the liquidity laying below 2285.
Next week will prove to be a defining week in the future trend of XAU.
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