GOLD → The certainty of a strong market or the trap of MM?

17 Sep 2023

XAUUSD is strengthening at the end of the week and closed above Monday's open. BUT! The dollar is also strengthening and on the chart we see several key elements forming and an important zone that can give us strong signals.



In the coming week, the following news is worth paying attention to:
09.19

• CPI (YoY) EUR
  

09.20

• CPI (YoY) USD
  
• FOMC
  
• FED
  

09.21

• Initial Jobless Claims
  
• FED
  

09.22

• S&P Global Services PMI
  

It is worth paying attention to the W1 dollar chart and the XAU 1D. A bearish wedge is forming on the chart, but a large candle was formed on Friday, within which gold has little chance of breaking through this area yes and in tandem with a rising dollar. There is a high chance of a correction beginning as we see a false break of a strong resistance zone on the hourly timeframe.



The price is forming a fljt 1928 - 1903. The upper boundary is being tested and at the same time price is forming a false breakdown of a key liquidity and resistance area and most likely we may see a correction to 1916 or even 1903 on Monday. BUT! If the dollar, which is giving a strong signal to break resistance, fails to go up and starts a correction, then gold may well be able to break the above upper zone and start rising towards 1950, as the price is now looking more correct than expected on the back of DXY strengthening.

Regards R. Linda!

17 Sep 2023

Nota