FxWirePro: Gold bulls take-off above DMAs shrugging-off shooting star and hanging man, major trend still in consolidation phase

Gold (XAUUSD price) formed “dragonfly doji” at $1173.92 levels, ever since then bulls have been evidencing considerable upswings above 7 and 21-DMAs, while both price and technical indicators move in tandem (refer daily chart).

For now, more rallies seem to be on the cards on intensified bullish momentum signalled by both the leading oscillators (RSI & Stochastic curves) and bullish DMA & MACD crossovers.

Bears in the intermediate trend resume after failure swings at stiff resistance & hits 13-month lows with the occurrence of hammer pattern.

After 3-years of consolidation phase, trend now seems exhausted again after shooting star patterns near 38.2% Fibonacci levels, the major downtrend resumes upon bearish EMA & MACD crossovers (refer monthly chart). 

On the contrary, the more likely upside scenario for gold has returned multiples of this potential loss. With our forecasts still calling for a resumption of a synchronized global growth and hence a resumption of the medium-term trend lower in the dollar, we consequently maintain our bullish view on bullion. 

Hence, on hedging grounds, initiate longs in CME gold contracts for Dec’18 delivery at spot reference of $1,206.01/oz. Activated an equivalent unit at $1,327/oz in June 2018 as well.

Today, Gold futures are on sideways, though edged higher a little, clawing back from a steady slump that had nudged the underlying price of the precious commodity towards day lows at $1203 areas, as a brawny dollar paused its advance.

Currency Strength Index: FxWirePro's hourly USD spot index is inching towards -68 levels (which is bearish), while articulating at 12:09 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex