After a nice home run last Wednesday when Gold in USD surged as expected and easily broke the 38.2% fibonacci retracement ( +/- 1221.20) on the Daily chart (1), price is now stuck (2) between a higher resistance at 61.8% fibonacci retracement (+/- 1237.50) (3) and the 38.2% old resistance now a support. Will price manage to break the next resistance and continue its upward momentum or will it bounce on the 61.8% resistance to retrace and eventually move back to follow the current medium down trend? Let see what the egoldfx TrendStrength is telling us.
The egoldfx TrendStrength meter is showing that Gold in USD is still in a upward momentum and even if Gold strength line has crossed below the USD strength line (2), we can expect it to be just momentary since none of the strength lines have reached a bounce level (3 or 7) in order to send a trend reversal warning signal. We will need to wait tomorrow to see if USD strength line remains above Gold strength line.
Current Strength: GOLD: 4.8 > USD: 3.1
