Revisiting our Chart of the Day from Tuesday (https://www.gomarkets.com.au/chart-of-the-day-apr9/) where we took a look at the safe haven asset of Gold.
On Tuesday we were seeing Gold catching a bid and trading higher on the back of a softer dollar and investors cycling out of riskier assets and aligning themselves with the risk-off assets.
We discussed the longer-term setup of the head & shoulders pattern forming and also the declining trendline that has been capping the asset and causing the lower highs.
As we look at it now, the U.S. dollar was on the front foot yesterday and as investors cycle back out of safe-haven assets we can see that Gold meets the declining trend line and fails just as it touches it, we have some support today on the weekly pivot level, but for the time being the original two ideas are still in play as we are yet to see a break of the neckline on the head & shoulders formation or a convincing push above the trendline.
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By Alex Simcock
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Sources: Go Markets, Tradingview