Today I’m going to show you exactly how I’m trading gold next week.
I’ll also show you the XAUUSD key levels and targets I’ll be monitoring throughout September.
Lastly, I’ll wrap up with the latest on the US Dollar Index (DXY), as the dollar’s trajectory will impact gold.
Watch the video below and scroll down for the annotated charts and analysis.
XAUUSD (gold) has been an excellent market to trade since early August.
The last time I talked about XAUUSD, I questioned the market’s apparent bullishness on gold.
At the time, gold was trading near $1,940.
We then got the breakdown from the November trend line on August 8th.
My target following that breakdown was the $1,890 support region, which was reached on August 16th.
From there, I told VIP members I was looking for a move back to the $1,940 confluence of resistance, which we got this week.
So where to from here?
Given the US Dollar Index (DXY) holding above 103 at the August close and today’s rally, I favor looking for XAUUSD shorts next week.
However, today’s close will be key.
A daily close above $1,938 will make me more hesitant about shorting gold, whereas a close below that mark will give me more confidence.
My targets for XAUUSD if we get the bearish setup here include $1,890 and $1,810.
Of course, the DXY will play a pivotal role here, especially whether dollar bulls can finally break the 104.30 resistance next week.
Get Lifetime Access to Our Trading Group for daily analysis videos, see Justin Bennett’s trades in real-time, receive exclusive trade setups throughout the day, and access over 1,000 other forex and crypto traders. Last chance to join at a ridiculously low price. Offer ends August 31st!