As we suggested yesterday, sell signal on gold is on! The recent support was successfully tested as a new resistance, which helped to push prices to mid-term lows. The sell signal on gold is very strong and we should see a further decline in the price of this precious metal.
The weakness of gold is partially down to the strength of the American dollar. The US dollar index broke the 93.5 point resistance, triggering a buy signal. We were also expecting this and mentioned it in yesterday’s video.
AUDUSD broke the lower line of the bearish flag, which was formed above the long-term upwards trend line (from the beginning of the 2016). That created strong bearish momentum, allowing us to break the upwards trend line and trigger a sell signal.