Gold And Gravity: Play Of The Week
Guillaume Touzet | Feb 21, 2017 05:43AM ET
Gravity always wins- what goes up must come down. It's what seems to be happening with XAU/USD. Everything is starting to look like a new downtrend is ready to happen. First, technically...
On a daily chart, the uptrend was broken 10 days ago (1) when it broke the uptrend line, but price has moved sideways since then with no real direction. It tried to break out the last high 1244.75 (2) but has failed so far.
Now let's move to the TrendStrength Meter.
Since gold strength has topped and USD has bottomed, a trend reversal warning failed on the first cross (1) but yesterday a second cross (2) was made possible with USD strengthening. Everything is in place to finally start new a short term downtrend. Unless major news goes against consensus or an "out of the blue" comment is broadcasted, we can expect a new downtrend to materialize in the days to come.
Current TrendStrength: Gold: 2.4 / USD: 9.0
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