The Gold price has dropped further on the short term and could resume the minor retreat if the USDX will have enough energy to climb higher in the upcoming period. Price is trading right below the $1320 per ounce, but is almost to reach an important confluence. The minor corrective phase was expected, but this could end up soon if the USD will slide further versus its rivals.
Right now is very important to see what will happen on the USDX, which has managed to breakout above a dynamic resistance. The dollar index has come down to retest it and now is somehow expected to climb much higher.
Gold dropped in the morning, even if the NZD/USD and the AUD/USD have rallied aggressively. Personally, I’m expecting the Aussie and Kiwi to drop again versus the greenback because the pairs are located right below some important resistance levels.
Price has dropped further and is almost to reach the warning line (WL1) of the descending pitchfork, most likely will be attracted by the confluence area formed at the intersection between the uptrend line with the warning line (WL1). Remains to see how will react when will touch the mentioned confluence, a breakdown will accelerate the sell-off.
However, a rejection from this confluence will signal an increase at least till will reach the $1348 per ounce (horizontal resistance) and the lower median line (LML).
