As mentioned previously, a bearish bias would be invalidated should price break and trade above 1480. Historical price action and seasonal tendencies show that GOLD is more often bullish in January than not. 1445 has established itself as a good support, suggesting that correction might be over and recent price action supports a bullish perspective. GOLD is bullish on both the weekly and monthly charts. Some may also take the view that it retested a previous price action pattern resulting in continuation.
However, I also note that USDOLLAR is currently testing a multi-year trendline. Liquidity is low which increases the likelyhood that recent price action might mostly be false breakouts across most pairs as it is December the 28th.
I will therefore look to buy GOLD on dips in January with the view that price will try to retest last year's highs.
However, I also note that USDOLLAR is currently testing a multi-year trendline. Liquidity is low which increases the likelyhood that recent price action might mostly be false breakouts across most pairs as it is December the 28th.
I will therefore look to buy GOLD on dips in January with the view that price will try to retest last year's highs.
