Gold/USD: Testing Its Uptrend Line
Guillaume Touzet | Mar 28, 2017 09:42AM ET
Gold in USD is testing one more time its uptrend line that started on March 15, 2017 when the high of the March 13, 2017 candle was broken. Since then, price has bounced 3 times (1)(2)(3) on its uptrend line showing no sign of reversing.
This short term uptrend seems to follow the medium term uptrend even if the long term term trend is down. Only a close below the uptrend line could send a warning about a potential trend reversal and indicating that the short term trend will try to catch up with the long term downtrend. Let see what's the eGOLDfx TrendStrength Meter is telling us.
The eGOLDfx TrendStrength Meter is confirming that currently gold is in an uptrend when gold strength line crossed above the USD strength line (2) and doesn't seem to change direction in the days to come since gold strength line is one more time bouncing on the lower bounce level 3 (3) indicating that gold should get stronger soon. In order to have a clear trend reversal we will need to have gold strength line bouncing on the upper bounce level 7 or USD strength line bouncing on the lower bounce level 3. For that, only a major news, negative for gold or positive for the USD, could reverse this upward momentum.
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