Sell order activated / Gold follows DX movements closely

Combination of Technical and Fundamental analysis: One of the bigger charts caught my attention where ATH from #1,980 Year was Sold back later on. Second ATH, Year #2008 (Housing crisis), Gold engaged the aggressive takedown on the aftermath. Another ATH seen on August #2011, was Sold instantly and engaged multi-Month Descending Channel. Many similarities with nearest fractal has another August ATH (#2020 Year), where Gold engaged serious decline and is currently Trading below that level. As Gold is cyclical asset, according to my model, Gold tends to struggle after pricing new ATH, as soon High is priced, aggressive takedown occurs and Price-action forms Long-term Descending Channel, and that’s why I am heavily on Bearish side in most cases (Selling every High) as Shorting is the best way to make Profits as a retail Trader. Keep in mind that within current Trading week's macroeconomic Fundamentals, all should be positive wise for DX, the market was yet again perfectly timed for strong Bearish takedown once #1,952.80 Higher High's pressure point is priced in. The only important reports left are Fed minutes and U.S. GDP. The latest eruption in the U.S.- China Trade dispute pushed a widely watched Treasury market recession indicator to the Highest alert since #2007. Rates on Bond Yields sank aggressively, completely erasing the surge that followed #2016 Year elections. At one point, they yielded #32 basis points less than #3-Month bills, the most extreme Yield curve inversion since the lead-up to the #2008 crisis. Gold could be in a significantly Lower-rate environment for a while. The outlook for Medium-term configuration on Gold declines resonated in options markets, too, which Price-action is Targeting typically a drop through (# -1.00%) this fractal. If current #1,952.80 benchmark isn't invalidated, I also note the potential for a further leg down in the Bond Yields curve. Potentially, the curve starts to decline because the Fed is being pressured by a combination of data and obviously downside risks on the market, which advises retail Traders to be more careful. Heavy Buying in Fed funds futures contracts since the Fed delivered its quarter-point reduction lately means the market is now pricing in another reduction in February. My formula points that the signal from the curve suggests money markets should be pricing in a Higher probability of the Fed’s policy rate unchanged all the way towards #Q2.


Extended edition of the commentary, since many Traders of mine made inquiries regarding Stimulus: U.S. Stimulus creates more money / cash supply, aswell inserts more cash into the economy. That development alone devalues the value of the DX, which in turn creates Inflation. Gold is a traditional deflationary asset and the market seeks to 'park' capital to Gold in order to protect it’s value from Inflation. Gold is described in economic books as a Store of Value and well known safe-haven. This is why (or as it should be) Central banks should hold Gold as reserves for every Dollar (or any other domestic currency) they print.


My position: As Price-action tested #1,920.80 Support throughout yesterday's session and reversed on more of #25 points upwards (triggering my breakeven Stop-loss in the meantime), I have engaged new Selling order with #1,943.80 as my entry point. Sequence continues to depend strongly on how DX fares into coming sessions which will decide Gold's next move. If U.S. GDP delivers decent numbers for DX recovery, it is Natural to expect Selling action on Gold. Keep in mind that Gold's Price-action is isolated within Rising Wedge able to convert into Bullish flag, I still believe that Support zone of #1,918.80 - #1,921.80 will be tested again since every Top that Gold delivers is firstly corrected, then later on Price-action continues soaring. It is important to note that Gold is on non-stop rise since November #4 and the sequence has to be over sooner or later (regardless of the Fundamentals), where huge drop will occur on the aftermath.