LONG
is forming a rally to 1920, which is what I have been talking about for a few days now. At the moment, while DXY is in consolidation near an important level and does not give signs of falling or rising, we see a violent reaction in gold
XAU goes beyond this consolidation and forms a retest of 1919 resistance followed by a false breakdown. But on the background of a strong market, a weak technical pullback is formed and the price goes back to the resistance retest and breaks it, updating the local high to 1921.
There are several important levels marked on the chart: support in 1919 and the next support in 1914. Consolidation of the price above 1919 will form a setup for opening long positions, which will allow to hold trades until 1930. 1932.
If the price will form a pullback and form a consolidation below 1914, in this case, we should expect the price to decline to the previously broken consolidation boundary.
Pay attention to the dollar index, it is still consolidating above 103. A fall below this level will give a strong rally for the XAU
Support levels: 1919, 1914
Resistance levels: 1921, 1924
I expect a predictable reaction from these levels, it is important to wait for a signal confirmation in the market and only then open trades.
Regards R. Linda!
