$XAUUSD Update

Gold bounce from 61.8% level at 1642 as expected but failed to reach my second target at 1700. The precious metal fell sharply and breach previous low before settling back above 1642. Outlook remain bullish above 1633/42.

XAUUSD DAILY CHART - Possible double bottom formation.

$XAUUSD Testing 61.8% Retracement Level

XAUUSD DAILY CHART - Gold found some support near 61.8% retracement level at 1642, which could be the bottom of a possible ABC correction pattern. I am looking to buy the pair targeting 1671 and 1700 with stop loss below this month low.

$XAUSUD Buy Setup

XAUUSD 4 HOUR CHART - Possible flag pattern breakout, targeting 1720 and 1730 area. 

$XAUUSD Outlook

$XAUUSD fell sharply this week from 61.8% level of October downtrend around $1,748 but quickly found support around $1,705. I think it is the key level to keep the  short-term bull scenario alive. Upside targets are $1,768 (78.6% of $1,795.1 to $1,671.9) if it can hold above $1,748 (61.8%). A slip below $1,700 should trigger sell-offs targeting $1,670. 

$XAUUSD 4-Hour Chart - Short-term bullish scenario.

 

$XAUUSD Daily Chart - Bearish scenario if price move below $1,700.

$XAUUSD and $USDX Follow Up Analysis

Gold gained for the 4th day while dollar index consolidate. It reach the mentioned correction target at 50% fib retracement level of October downtrend (x-a) at 1733.
I think we may see a correction pattern forming in the next few weeks (or even until end of year), testing this month low. Daily momEMA(20) still below momEMA(50) and I'm hoping to see 14-day momentum back below 100 level.

$USDX Daily chart - Dollar on demand.

 

$XAUUSD daily chart - Strong resistance around 1737