The U.S. dollar has once again slipped below both the 50% Fibonacci retracement and the lower boundary of the red declining channel, printing another local low.
A lot depends on today’s daily close.
Because it will likely determine the direction of next week’s move.
However, if sellers stay in control, we should prepare for at least a test of the bullish gap from early June (99.18-99.26), which successfully stopped the bears in mid-June, or even a move toward the 61.8% Fibonacci retracement around 99.00.
Connecting the dots: today’s close will likely be the key to Monday’s trading session.
The result?
The U.S. dollar has once again slipped below both the 50% Fibonacci retracement and the lower boundary of the red declining channel, printing another local low.
So, what comes next?
A lot depends on today’s daily close.
Why?
Because it will likely determine the direction of next week’s move.
If buyers show the same determination we saw on Monday and manage to close today’s session back above both the 50% Fibonacci retracement and the lower boundary of the red declining channel, they’ll invalidate the developing bearish engulfing pattern and reopen the door for another attempt to reclaim the 100 level early next week.
However, if sellers stay in control, we should prepare for at least a test of the bullish gap from early June (99.18-99.26), which successfully stopped the bears in mid-June, or even a move toward the 61.8% Fibonacci retracement around 99.00.
Connecting the dots: today’s close will likely be the key to Monday’s trading session.
Gold
