Next Gold Move

This chart of the USDX index shows an important breakout is afoot. If this breakout proves valid and continues ahead, it may present some challenges for XAUUSD by means of key resistance near 4240/45. Any decline below 4165/70 is likely to find subsequent support around 4115/20. Nonetheless, the DXY chart below may not only suggest selling pressure will re-emerge --likely near 4240, but could re-intensify selling towards a break of 4100. Im such intermarket tehnical dynamics, such bullishness in DXY could mean repeated failed buying for XAUUSD, rather than outright violent sell-offs in the yellow metal.

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