GOLD long term upside movement

21 thg 7, 2019

as we can see here on the gold chart that the commodity has been trending in a funnel as of recently. the market has been trading strongly within this funnel with each test leading to a strong move back to the other direction. right now we can see that the market had approached the top trendline of the funnel and then broke through to the upside creating a higher high outside the trending area, to then come back inside the previous region. the market has come and is testing a potential support area with also the 0.618 fib level. these are indications that in this area the market can create a new structured level and move off into new potential higher levels because it had broken its previous sideways trend. however, the main reasoning for this is because of the excessive US news which is giving an uncertainty in strength for the US dollar, high volatility should be expected and due to expected weakness in the currency, it will then leade to gold becoming stronger.