Monday, December 12, 2016

XAUUSD/DXY

Wave C-4 is complete. XAUUSD is now forming Wave C-5. Will the low today @ 1151.24 USD per ounce the final bottom? Or will the rate hike two to three days from now push gold further down?



As for $DXY, there are two more waves to go. Currently, if the 101.78 high will no longer be broken, then we already saw the end of Wave 5-3 of the USD index. After this, $DXY has one more rally left before the rate hike. Once Wave 5 is completed, normally it is followed by a 3-wave retracement. We expect that such retracement will be good both for gold and the $PSE. However, we just don't know the extent how price manipulation can distort this kind of price action.





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