Good morning traders,
A question at the forefront of the FX market is why has gold continued to decline whilst inflation appears to run higher?
The majority of longs would have been wiped out in the market as traders either closing down positions or SL being taken out.
With the US Government, FED and Treasury all set to continue to money printing through stimulus and infrastructure spending, we see gold as an opportunity for a longer-term swing trade.
Based on the increased supply on the USD front, the metals market should benefit from that.
Here we have a bullish count on GOLD with a double bottom formation and a weekly doji candle suggesting a reversal opportunity.
Keep in mind if gold breaks down from the rising trend line support the idea becomes invalid.
Take a look at our BEARISH USD count, if this comes through gold long scenario should play out.
Any thoughts or comments let us know!
A question at the forefront of the FX market is why has gold continued to decline whilst inflation appears to run higher?
The majority of longs would have been wiped out in the market as traders either closing down positions or SL being taken out.
With the US Government, FED and Treasury all set to continue to money printing through stimulus and infrastructure spending, we see gold as an opportunity for a longer-term swing trade.
Based on the increased supply on the USD front, the metals market should benefit from that.
Here we have a bullish count on GOLD with a double bottom formation and a weekly doji candle suggesting a reversal opportunity.
Keep in mind if gold breaks down from the rising trend line support the idea becomes invalid.
Take a look at our BEARISH USD count, if this comes through gold long scenario should play out.
Any thoughts or comments let us know!
Trade active:
Comment:
Gold is setting up an impulsive structure from the double bottom formation. Ideally, we would like to see an A-B-C correction so we can go long in the market.
