GOLD vs DXY - Negative Correlation, meet in the middle?
I've mapped XAUUSD (top) against DXY (bottom) to clearly show the almost perfect negative correlation.
DXY is more extreme in it's movements, as highlighted in the recent candles.
I'm expecting further strength for DXY this week, especially as FOMC speakers are all hawkish and the market is expecting a 0.5% rate hike.
If this is correct then Gold will have no choice but to fall, and I'm expecting it to hit the 1775 level, due to DXY strength.
DXY is more extreme in it's movements, as highlighted in the recent candles.
I'm expecting further strength for DXY this week, especially as FOMC speakers are all hawkish and the market is expecting a 0.5% rate hike.
If this is correct then Gold will have no choice but to fall, and I'm expecting it to hit the 1775 level, due to DXY strength.