We took some nice buys of the trend line and the yellow zone at 1793 yesterday which i published in my last post. the initial target was 1803 which we reached easily. I closed my long position at 1798 because of the immediate rejection. Nevertheless I waited for 1815 to see what happened and until the ISM services PMI got released. The news caused the USD 10 year yields to dump and the dxy to rise. Gold correlated and after the break of 1807 I knew this was gonna be a big sell of to 1800-1790.
At the moment price hasn't broken 1788, which would make the gold price go back into the bearish zone. Because support got created on 1790 I am waiting for price to retrace to 1798,1800 and 1803. These prices are the 0.618, 0.5 and 0.382 fibonacci levels and I am waiting for any reaction at these price points. If nothing happens and it starts ranging, 1800 could be the new buying zone with upside potential up to 1826. If price forms a bearish structure with lower highs, then we could wait for price to break 1788 and go short to the 1770s.
For now its going long to test the 1798-1803 zone!
At the moment price hasn't broken 1788, which would make the gold price go back into the bearish zone. Because support got created on 1790 I am waiting for price to retrace to 1798,1800 and 1803. These prices are the 0.618, 0.5 and 0.382 fibonacci levels and I am waiting for any reaction at these price points. If nothing happens and it starts ranging, 1800 could be the new buying zone with upside potential up to 1826. If price forms a bearish structure with lower highs, then we could wait for price to break 1788 and go short to the 1770s.
For now its going long to test the 1798-1803 zone!