Hi guys.
The first 2wks into 2016 has been truly a rollercoaster ride in financial markets; with crude oil, china, risk-off and risk-on plays being front and centre.
Well what about gold..... nothing seems to be happening much in term of the media spotlight. I have attached a chart of the XAUUSD fx pair...yes I DO consider gold to be a currency, but let us not get into that.
This is todays 4hr chart with key resistance levels (in solid and dashed RED lines) and support levels (in solid and dashed BLUE Lines). This is the classical wedge formation of gold being in congestion/consolidation.
Both buyers (risk-off) and sellers (risk-on) are fighting it out.
The result of this fight will allow gold to breakout and will either send gold to test key resistance (risk-off will continue to dominate ALL financial markets) or test key support (risk-on will dominate ALL financial markets)...thus gold can be a proxy and early signal for positioning in other markets going forwards.
And thus in this gold chart one can; in my view, see how the Fx and other markets will pan-out. There isn't much more time to go before the price breaks out from the triangle...so be prepped.
If risk-on then risk currencies will rally and safe havens will sell off, and conversely the other way round.
So good hunting
MAXIM Trading Strategies.
