XAUUSD
has had a great run up, with a nice price increase. Like most good runs (up or down) after a while, they need a breather and a healthy correction in price. This is a good thing. While I see Gold going much higher this first quarter - the price of Gold is currently heading straight into some heavy daily resistance at the 1350 round number. This is a level where (in the past) heavy selling has come into the market to push price lower.
We can use this analysis to help us filter out possible trades in the USD-crosses. If Gold does move lower from here (wait for bearish price action to confirm) this could prove to be bullish for the USD related pairs.
At the time of writing this (Jan 16, 13:28 NZ time), the USD cross pairs are all still in SELL mode, wait for a change in the group as a whole, before taking any position!
Hope this helps Forex traders out there to make sound decisions.
Remember to always wait for confluence, confirming price action and an accurate risk calculation before getting into the market.
Know where to get in, know where to get out and trust your own analysis above that of other opinions out there!