In today’s live trading session, we went over our current Gold trade and the current status of the US Dollar Index (DXY).
For months we waited for Gold to breach 1845 on the daily timeframe, and finally, it occurred yesterday. We wanted to see if yesterday’s daily closure before we entered. The candle closed as a hammer and it is the least bearish candle there is. So we are waiting for today’s candle closure or for price to break below our target one before we enter.
As for the US Dollar Index (DXY), it has approached a consolidation zone near 92.25. Price has had previous rallies from this zone, but as of late it has also had bouts of consolidation. Based on this, we are looking to see a lack of movement until the price decides if it wants to go higher or lower. We do have some minor support below at 92.150, which price may visit before doing anything drastic.
For the time being, many of the majors such as EURUSD and AUDUSD are ranging. In terms of our long term perspective, we are bullish on both pairs, but they have to clear their respective monthly highs first. As always, be safe and trade responsibly!