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XAUUSD Gold vs Dollar Index and Potential Trade Opportunity

XAUUSD Gold vs Dollar Index and Potential Trade Opportunity

Renewed and elevated concern over the trade dispute that is now being labeled as a trade war between the United States and China has continued to be highly supportive of the U.S. dollar. Geopolitical concerns about Saudi Arabia, concerning the disappearance of an American resident, and concerns about the European Union as it deals with issues from both Italy and Turkey have also added to dollar strength.

There is a battle of sorts between the safe haven asset tendencies inherent in the U.S. dollar and gold. ( Even JPY in an apporach )

Gold was able to survive against DXY rally so far. DXY reached the resistance region. A potential bearish retracement on DXY may trigger the Gold’s Bullish Move.

What can be done: 

Technically, we see a flag pattern and this pattern mostly appears to be a bullish continuation pattern.

Bullish Breakout of the pattern – somewhere 1230 – can give us a long opportunity targeting 1243 and 1250 with stop loss below 1218.

1244 – 1250 interval is the trend reversal region and Gold prices may reverse at this main resistance.

You can view the chart: GOLD VS DXY

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DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money

Gold vs Dollar Index: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

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