XAUUSD

XAUUSD on the weekly is forming a pennant after a breakout of the down channel.

Should it breaks resistance at 1280, the XAUUSD will target 1410. This will likely coincide with the DXY going south.

A look at gold

A look at gold.

Gold usually moves opposite of the USD and a drop in gold should correspond to a strengthening USD.

This is gold chart.

 

The gold chart is showing at gold has broken out of a channel since 2014 and has retested the upper channel trendline at $1204. it may go down slightly more to $1190 where there is support and bounce. Currently there is a small pennant that is visible.

Will Gold go up?

I don't really know. However, if gold strengthens then we can think that the USD will decline.

Which makes it a really interesting thing to note that USDJPY chart.

 

We can see that the USDJPY is forming a pennant that is flagging down wards to $105.

Next week is earnings season, I think there will be great potential for something to move out of their consolidation.