GOLD (XAUUSD) – SELL – 11th September 2020 (Closed)
Good morning guys,
The DXY looks very bullish on all time frames. You can move the stop loss for the USDCHF to the open price.
RSI is signalling a bullish divergence and we have just seen a hammer candle on a key support level. The 5 wave structure lower that we have been tracking for some time appears to have completed. We are now expecting a rise in the USD over the coming weeks. We will be looking to reposition on the DXY at some point as well.
With that in mind, we could see metals take a fall due to the inverse correlation.
GOLD – Technical Analysis
We have seen a series of lower highs on the daily time frame. There has been a shooting star daily formation which is a bearish signal. Gold has also broken below the inclining channel support line. We will be looking to enter a sell position anticipating a move lower.
Trade Setup: SELL Market execution, current price 1945.0, stop loss 1970.0 and take profit targets 1900.0 and 1880.0.
Stop loss: 250 pips
Take profit: 450-650 pips
There is a very strong support zone around 1920-1910 that we need to be aware of.
