We’re still awaiting an impulsive breakout above the 60-minute downtrend line + 1213 level in /GC (gold futures), which were once again smacked down today following the latest test of the trendline.
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- GC 60-min Oct 8th
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- GC daily Oct 8th
While the previously mentioned scenario of a potential of a slight undercut of the previous lows in /GC to put in a divergent low on the daily frame is still a decent possibility at this time (see daily chart above), gold could start to rally soon if the intermediate to long-term bullish bearish case for the US Dollar continues to firm up. Assuming that it holds, EUR/USD has put in a double bottom & second divergent low (with room for a little more downside while keeping the divergences intact).
EUR-USD 60-min Oct 8th