Gold Determined To Jump Higher!|KOL Analysis•Olimpiu Tuns

Gold is traded at $1,973 and most likely it will hit the $1,981 all-time high in the upcoming hours as the bulls are in full control. The price is strongly bullish, so a further growth could be natural.

The yellow metal has decreased a little in yesterday‘s session, but the drop was only a temporary one, I’ve said in the previous analysis that a minor drop could help us to go long again. Gold rallies as the USD accelerate its sell-off, the USDX has reached fresh new lows even if the US Advance GDP has decreased only by 32.9%, versus a 34.5% estimate, the Unemployment Claims have increased from 1422K to 1434K in the previous week, failing to match the 1440K prediction.

The gold price and the US dollar continue to move in opposite directions as the traders and investors were disappointed by the FED on Wednesday.

● XAUUSD Challenging Dynamic Resistance

Gold is trading in the green and is pressuring the first warning line (WL1) of the former ascending pitchfork, a valid breakout above this dynamic obstacle and another higher high will confirm an increase at least till the $2,000 psychological level.

The $1,981 all-time high could be ignored if the USDX will continue to drop in the short term. Only a false breakout with great separation above the warning line (WL1) or any other reversal pattern will suggest that the upwards movement is finished and that we may have a corrective phase.

Personally, I believe that a valid breakout above the WL1 will signal potential growth far above the $2,000 psychological level. On the other hand, a rejection from the WL1 will send the rate down towards the 150% Fibonacci line.

● US Dollar Index Drops Like A Rock!

USDX has dropped below the inside sliding line (SL1) of the descending pitchfork signaling a deeper drop on the Daily chart, the next downside target is seen at the second sliding line (SL2), right above the median line (ML).

A USDXs further drop will force EUR/USD to jump higher and to reach new highs, I believe that only a strong, major, reversal pattern on the second sliding line (SL2) could signal a reversal. It the US Dollar Index will touch the median line (ML) of the descending pitchfork, technically, the index could resume the current downside movement in the upcoming period.

● EUR/USD Attracted By The WL2!

EUR/USD has registered an aggressive breakout above the 1.18 level and above the 250% Fibonacci line confirming further gains. The pair has opened with a gap up and now is targeting the second warning line (WL2) of the former descending pitchfork.

You can keep an eye on the economic calendar today because the Euro-zone and the US figures could bring high volatility in the short term. Personally, I dont believe that the US could take the lead and drive EUR/USD lower even if the US data will come in better than expected.

EUR/USD could try to close todays gap only, the outlook is bullish, so the pair could jump way higher as long as it stays above the 1.1800 level and above the 250% Fibonacci line. The WL2 and the 1.2000 could be used as near-term upside targets if you are long on this pair.

{About the Author}

Olimpiu Tuns is a seasoned market analyst / trader / trainer on the financial markets with expertise in forex, cryptocurrencies, commodities, futures, options, index, CFD for more than 8 years. He is also a famous blogger in both technical and fundamental analysis, trading signals, trade setups, etc.

He has worked as a Market Analyst / Consultant for three major Brokerage companies, Admiral Markets, MultiBank Exchange Group and InstaForex (live webinars, market analysis, educational materials, video analysis, video tutorials, ghostwriting, content creator), as a Social Media Manager and as a Financial Markets & Crypto Analyst / Contributor for very important news portals/blogs (investing.com, benzinga.com, forexalchemy.com actionforex.com, countingpips.com), websites, educational platforms (Forex.Academy, Forex.Today), independent clients, etc.

Olimpiu Tuns currently works as a Financial Markets & Crypto Analyst / Signal Provider / Trader / Trainer.

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