XAUUSD
Korean peninsula is on fire - not literally - in the past few weeks due to Mr.Kim's crazy idea of showing the world that North Korea is now capable of producing pretty "ugly fire works". Several missile tests and also another "H-Bomb" gave the world a spinal chill, but equity markets shrugged the news off. Gold was a hot topic in the last several weeks, but not anymore as the market absorbed all the "ineffective news" of North Korea caused the dollar index to rise against the gold and other currency pair - well except Japan. This is a graph of Gold in a day time frame which I think can give you a general idea of what's happening. Gold tumbled all the way from the top from around 1350-1360 and seems to follow this trend for a while.
In a weekly time frame, the same picture as day. This is a strong short in my opinion because of two time frames conformance. If there is no uncertainty rises again a few weeks from now we should continue to see its plunge against the dollar which traders are speculating on tax reform and inflation data coming up soon.
Trade closed manually:
Profit could be wiped out if I do not close this manually. I set a target for 1260.xx, but it doesn't seem to move anywhere further down than this because of the US data that are coming out on Friday could be weaker than expected due to the Hurricane mayhem; this could drive down the DXY and in return drive up the XAUUSD. So, it is wise to close our short position first. Trading against the trend at this point seems like not a bad idea as well as it just recently bounced off one of Fibo trend line. In a long run, I still believe it's gonna go down to the 1260.xx
Comment:
If you plan to trade against the trend now the target would be around 1288.xx