FxWirePro: XAU/USD dragonfly doji counters shooting star in minor trend, hammer defies double top in major trend

Technical glance: Gold (XAUUSD price) has continued to sense buying sentiments after dragonfly doji formations at $1,287.09 and $1,285.39 levels respectively (on daily plotting). Consequently, bulls have taken-off rallies above 7 & 21-DMAs.

For now, more bullish rallies seem to be on the cards as the momentum oscillators (RSI & stochastic curves) show upwards convergence along with the prevailing rallies that indicate intensified buying sentiments. 

To substantiate this bullish sentiment, the trend indicators also show bullish DMA, EMA & MACD crossovers on both daily and monthly terms.

On a broader perspective, double top with consecutive shooting stars nudges price below EMAs on monthly plotting. On the contrary, ever since the formation of hammer pattern at $1,200.55 levels in Aug’2018 (exactly at double top neckline) we’ve seen more than 9.5% more upswings so far, while the momentum indicators substantiate bullish sentiment on this timeframe as well.

Overall, bulls in the bullion market managed to ensure the consolidation phase, and it is likely to prolong as long as the current price remains above EMAs. 

Trading tips: At spot reference: $1,315.50 level, on trading grounds, as Stochastic & RSI curves are indicating buying momentum, one can trade this commodity via one-touch call options using upper strikes at 1,320.25. The strategy is likely to fetch exponential yields as the underlying commodity price keeps spiking towards this upper strike on the expiration.

Currency Strength Index: FxWirePro's hourly EUR is at -10 (mildly bearish), hourly USD spot index is inching towards 11 levels (mildly bullish), while articulating at 11:52 GMT. 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex