Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Gold: trading the wavy downtrend
Information is not investment advice
Risky moods are still there in the market - that's why gold is still falling. The MAs are all aligned inversely and aim downwards, and the gold price trades consistently below them. Every now and then, it comes into the area between 50-MA and 100-MA every and cedes back the gains.
Recently, it made a serious dip to 1720 and bounced upwards. If the "algorithm" doesn't change, it's likely to go slightly above 1760 to meet the 50-MA and revert downwards.
Watch the resistance of 50-MA and 1760 for signs of bearish reversal.
- If the U-turn is confirmed, prepare to sell.
- If 50-MA is crossed upwards, that's a bullish challenge to pass the 100-MA and 200-MA - a possible mid-term uptrend alert.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?