Target is shown on the chart (Fibo Level at 0.786)
Another perfect example of Head & Shoulder pattern is in the making. When the neckline is broken the drop would be more aggressive. Hence, GOLD would respond in an aggressive manner to the opposite direction as well. Another point to mention is that while GOLD is testing the ascending main trend line for the third time DXY has broken the daily trend line which I believe is not a coincidence. In case any price action above the broken red line will invalidate the analysis.
Good Luck to ALL!
Disclaimer - This Technical Analysis alone DOES NOT warrant a sell and/or buy trade. Before you enter any trade in the financial market, it is very important that you have a proper trading plan and risk management approach.
Another perfect example of Head & Shoulder pattern is in the making. When the neckline is broken the drop would be more aggressive. Hence, GOLD would respond in an aggressive manner to the opposite direction as well. Another point to mention is that while GOLD is testing the ascending main trend line for the third time DXY has broken the daily trend line which I believe is not a coincidence. In case any price action above the broken red line will invalidate the analysis.
Good Luck to ALL!
Disclaimer - This Technical Analysis alone DOES NOT warrant a sell and/or buy trade. Before you enter any trade in the financial market, it is very important that you have a proper trading plan and risk management approach.