As we indicated yesterday, sell signal on the Gold is on! Recent support was successfully tested as a new resistance, which helped to push the prices to the local mid-term lows. Sell signal on Gold is very strong and we should see a further decline in the price of this precious metal.
Weakness on Gold is at some point caused by the strength of the American dollar. Dollar index broke the 93.5 points resistance, which triggers the buy signal here. That was also expected and we mentioned that in our video from yesterday.
AUDUSD broke the lower line of the bearish flag, which was formed above the long-term up trendline (since the beginning of 2016). That brought us a high bearish momentum, which allowed to break the up trendline and trigger the sell signal.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire