Gold: XAUUSD Look for potential top this weekGold and the Dollar XAUUSD and DXY
The dollar's decline is close to finishing. Likely to be one two spots outlined below - so this is likely also to be a big week
for gold, oil, and across US pairs too. Look for buy set-ups on dollar pairs and sell set-ups on gold, silver, copper and oil...
As DXY tries to climb and hold above a little dynamic that underpins price from the lows,so gold is held back by a similar
dynamic resistance line from the highs on the chart to left.
DXY is close to changing back to positive, either from here, at 88.44 or from 87.70 at lowest. This is likely to happen this
week. It means that gold also is likely to reverse from current levels, or from one last burst higher from here at best. If it's
to reverse here DXY will have to break and hold above 89.53 - in so doing it will have broken key fixed resistance and the
upper parallel which has controlled the current down-wave from inception and so will flip the dollar back to positive and
gold back to negative again. This should be reflected by gold falling below 1341, giving the first confirmation that the trend
has changed back to negative in the near term and triggering a fall back to 1306 in all likelihood.
However, if 88.44 fails to hold during the course of this week it will tip the dollar into what should be one final selling
climax which should culminate at around 87.70 at the extreme before DXY finds support and begins to rally again.
This will carry gold to 1375 and at an extreme to a 1389 high.Look to close out remaining gold longs here, and some will
consider shorting if we see this price action develop later this week - rejection spikes appearing on the 1, 2 and 4 hour
charts will tend to confirm that gold is changing trend (the longer the better if looking to short here) and a break below
1341 will further confirm, triggering a short back to 1306
